Sensex shows weekly loss of 312 points on economic worries | business | Hindustan Times
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Sensex shows weekly loss of 312 points on economic worries

business Updated: Mar 12, 2011 13:53 IST

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Profit-booking in view of global economic worries, following tension in Middle East and North Africa region and powerful earth quake in Japan pulled down the BSE benchmark Sensex by 312 points.

Slow down in industrial growth to 3.7% in January 2011, compared to 16.8% in the year-ago period too weighed on the market mood, possibly prompting the central bank to take a re-look at its monetary tightening policy to contain rising prices.

Expectations of further hike in key interest rate by the apex bank in their next policy setting meeting on March 17, 2011 also put pressure on the market.

Japan was struck by a magnitude 8.9 earthquake off its northeastern coast followed by tsunami took its toll on share values as investors rushed to book profits.

A wider-than-expected US trade deficit and a rare trade shortfall in China for February, together with the sovereign downgrade for Spain by Moody's and the turmoil in Saudi Arabia raised investor fears of higher oil prices and slower growth.

Global crude oil which has crossed USD 106 a barrel mark to about 29-month high also worried market participants as they expected another round of rise in oil prices by the government in near term to stem the spiralling inflation.