Sensex drops for fifth consecutive week, down 104 points
The BSE benchmark Sensex declined for the fifth consecutive week, slipping further by 104 points due to persistent selling pressure after not so encouraging union budget presented last Friday coupled with sharp fall in rupee value against the dollar.business Updated: Mar 24, 2012 16:46 IST
The BSE benchmark Sensex declined for the fifth consecutive week, slipping further by 104 points due to persistent selling pressure after not so encouraging union budget presented last Friday coupled with sharp fall in rupee value against the dollar.
Operators and retail investors booked profits which were built up before the March 16 Budget that was expected to outline a reformist agenda of the government. However, the largely non-reformist Budget, which set a modest target for fiscal deficit, failed to impress the stock market.
The rupee's sharp decline against the US dollar to Rs 51 level fulled fears of inflated import bill, especially on account of oil. This will lead to further worsening of fiscal deficit situation and ultimately impact the overall as well as retail inflation negatively.
Besides, the Comptroller and Auditor General (CAG) said in a draft report that the government lost Rs 10.67 lakh crore on account of allotment of coal blocks to 100 private and public sector companies without auction during 2004-2009.
"A mix of domestic and global factors hurt investor sentiment. The leakage of the draft CAG draft report weighed markets down. The weakening rupee further spooked sentiments," said Ashika Stock Brokers, Research Head, Paras Bothra.
The Sensex moved higher at 17,531.47 and hovered in a wide range of 17,687.01 and 17,136.50 before ending the week at 17,361.74, showing a net loss of 104.46 points, or 0.60%. It has lost 927.61 points, or 5.07%, in straight five weeks.
The NSE 50-share Nifty also moved down further by 39.70 points, or 0.75%, to end at 5,278.20. It has also lost 286.10 points, or 5.14%, in last five weeks.
The move by the railway minister to roll back some of the tough proposals in the railway budget due to populist demands also unnerved investors.
Out the 30-share Sensex pack, 20 scrips declined while 10 others firmed up.
Major losers from the Sensex pack were Jindal Steel (6.80 pct), Hindalco Ind (6.23 pct), Tata Power (5.77 pct), Tata Motors (4.80 pct), Maruti (4.74 pct), Reliance Ind (3.62 pct), State Bank Of India (2.81 pct), BHEL (2.72 pct), Coal India (2.22 pct) and ONGC (2.20 pct).
However, Sun Pharma rose by 6.22%, HUL 3.29%, Hero Motocorp (3.21 pct), ITC (2.94 pct), Bharti Airtel (2.66 pct), M&M (1.74 pct), TCS (1.47 pct) and HDFC Bank (1.21 pct).
Among the major indices the BSE-Metal fell by 2.54 pct followed by he BSE-Power 2.50 pct, the BSE-Oil & gas 2.20 pct, the BSE-IPO 2.20 pct, the BSE-Auto 1.53 pct, the BSE-PSU 1.32 pct and the BSE-Capital Goods by 1.31 pct.
However, the BSE-FMCG shot up by 2.77 pct and the BSE-HC by 1.77 pct.
The total turnover at BSE and NSE fell to Rs 13,687.14 crore and Rs 61,312.15 crore, respectively, from the last weekend's level of Rs 15,706.25 crore and Rs 70,560.33 crore, respectively.