Sensex snaps 3-week winning streak, down 296 pts | business | Hindustan Times
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Sensex snaps 3-week winning streak, down 296 pts

The BSE benchmark Sensex snapped its last three week's winning streak and slipped 296 points due to profit-booking by operators and investors, amid weakness in European markets before the outcome of the bank stress tests.

business Updated: Jul 16, 2011 14:14 IST

The BSE benchmark Sensex snapped its last three week's winning streak and slipped 296 points due to profit-booking by operators and investors, amid weakness in European markets before the outcome of the bank stress tests.

A turmoil in global markets on fears of spreading of the euro-zone debt crisis to major European economies and lower industrial production data, pulled down Sensex to 18,326.42.

Impasse over debt ceiling in the US and back-to-back warning by Moody's and S&P on US debt also weighed on trading sentiments.

Bomb blast in three places in Mumbai during the week also affected the market sentiment.

Analysts said that first quarter results announced by the country's second largest software firm Infosys Tech were below market expectations and aided the downtrend.

The company reported a 15.72% jump in consolidated net profit to Rs 1,722 crore for the first quarter ended June 30, 2011.

Indicating sluggishness in the economy, industrial growth fell to 5.6% in May 2011 from 8.5% in the same month in 2010, mainly due to the poor performance of the manufacturing and mining sectors, further aggravated the situation.

The BSE benchmark Sensex resumed lower at 18,823.19 and dropped further to 18,326.42 before settling the week at 18,561.92, a net loss of 296.12 points or 1.57% from its last weekend's level. It had gained by 987.51 points or 5.53% in the last three weeks.

Interest rate related stocks from realty and banking segments, too, attracted selling on fears the rising interest rates in view of rise in inflation which might affect the bottom-line of these companies/banks.

Metal and mining stocks extended slide on reports that ministerial panel approved the draft Mining Bill, which proposed profit-sharing with people affected by their projects.

The NSE 50-share Nifty also dropped by 79.55 points or 1.41% to 5,581.10 from its last weekend's level.

Among the indices, the BSE-IT fell by 5.53%, the BSE-Teck by 4.51%, the BSE-Metal by 2.36%, the BSE-Realty by 1.89%, the BSE-Capital Goods by 1.35% and the BSE-Auto by 1.19%.

However, the BSE-IPO shot up by 1.70%, the BSE-HC by 1.26% and the BSE-Oil&Gas by 1.12%.

Major losers from the Sensex pack were Infosys (8.31%), Hindalco (6.26%), Jaiprakash Asso (3.95%), Hero Honda (3.76%), Wipro (3.63%), Tata Steel (3.56%), BHEL (3.02%), Cipla (2.56%), Reliance Infra (2.21%), Bajaj Auto (2.62%) and HDFC (2.60%).

However, Reliance Industries shot up by 2.21%, followed by ONGC 0.71%, ITC 0.52% and M&M 0.28%.

The total turnover at BSE and NSE fell to Rs 12,562.73 crore and Rs 49,941.40 crore, respectively from Rs 15,233.28 crore and 54,892.40 crore previously.