Today in New Delhi, India
Sep 21, 2018-Friday
New Delhi
  • Humidity
  • Wind

Sensex down over 4% despite Friday's bounce

Sensex and Nifty shed another 4 per cent over the week as markets impressively cut early losses after PM's reassuring statement on growth that strengthened possibility of fresh rate cuts.

business Updated: Nov 22, 2008 12:43 IST

Stocks: The key indices, bellwether Sensex and Nifty, shed another four per cent over the week as markets impressively cut early losses after Prime Minister Manmohan Singh's reassuring statement on growth that strengthened possibility of fresh rate cuts.

Analysts said the market is expected to continue its weekend recovery next week if the Reserve Bank announced fresh monetary measures as anticipated after inflation fell further to 8.90 per cent for the week ended November 8.

The market, however, will continue to be volatile in the new week in view of the expiry of derivatives contract, which is likely to trigger short-covering.

The global developments, with heightened worries about a protracted recession after more news about write-downs and job cuts caused by the lingering financial crisis, will continue to influence local equity markets.

Touching a low of 8,316.39 on Thursday, the Bombay Stock Exchange 30-share index later recovered nearly 70 per cent of losses to settle the week at 8,951.21, a loss of 434.21 points, or 4.63 per cent, from last weekend's close.

Similarly, the broader 50-share Nifty of the National Stock Exchange ended the week down 116.90 points, or 4.16 per cent, at 2,693.45 from its previous weekend's close.

The market cut short its seven-session long falling string in which Sensex had lost about 2,220 points or 21 per cent, largely because of the PM's confidence that the economy would grow by eight per cent.

He said the government will resort to fiscal, monetary, exchange rate and public spending instruments to neutralise the impact of the global meltdown and recession in the West.

Disappointing outcome from the G-20 Summit on financial market and world economy had overshadowed the Reserve Bank's steps on November 15 to enhance rupee and forex liquidity, beside reducing risk weights for corporate and commercial real estate loans.

Prime focus of investors during the week was the global factors after the World's second largest economy, Japan, slipped into a recession and simultaneous developments raised fears of a prolonged global recession.

Unstoppable capital outflows too played spoil-sport and offset any positive impact of the government's confidence-building exercise.

Realty sector was the worst hit with a huge 18.20 per cent fall in its index on speculation in global markets of a fresh wave in the credit crisis. The Bankex also tumbled by 10.80 per cent following sharp losses in banking stocks.

All sectorial indices ended with an average loss of 1 per cent to 18.0 per cent.

The broad-based BSE-100 Index also dropped by another 289.45 points, or 6.01 per cent, to end the week at 8,951.21 from last weekend's close of 4,817.48.

The BSE 200 Index and the Dollex-200 were quoted lower 1,048.86 and 348.62 compared to the last weekend's close of 1,119.97 and 378.60 respectively.

On the NSE, the S&P CNX Defty plunged by another 115.65 points, or 5.84 per cent, to finish the week at 1,866.00 from previous weekend's close of 1,981.65.

The CNX Nifty Junior also dropped a whopping 540 points, or 12.32 per cent, to end at 3,841.80 from preceding weekend's close of 4,381.80.

First Published: Nov 22, 2008 12:32 IST