Sensex ends lower for the third consecutive week, down 134 pts
Even tough the Sensex logged one of the best single day gain on the last trading day of the week in the 2012, the benchmark Sensex still ended lower by 134 points to close the week at 17,503.24 on constant selling due to setback to the ruling Congress party in the assembly elections, extending losses for the third straight week.
The week was shortened for holiday on March 8 for "Holi".
Slowing Chinese economy, weak rupee and firm crude oil prices also affected the market sentiment.
Facing an economic slowdown due to dwindling exports, China, the world's second largest economy, has for the first time in seven years scaled down its GDP growth target to 7.5% from 8% to focus more on structural problems and unbalanced development.
According to dealers, the election outcome would push the Congress led UPA government to go on the back-foot and may not be able to carry on with reform process due to resistance from opposition parties at the center.
The BSE benchmark Sensex resumed lower at 17,598.42 and hovered in a range of 17,691.96 and 17,008.77 before settling the week at 17,503.24, showing a net loss of 133.75 points or 0.76%. It dropped by 786.11 points or 4.30% in the last three weeks inspite of hectic short-coverings by operators on the Friday after good response by private-sector debt holders agree to participate the Greek's bond swap offer.
The news paved the way for Greece for the second bailout and for investors to go back for risk appetite like stocks as signs that the country was moving closer to avert a default. The NSE 50-share Nifty also declined by 25.85 points or 0.48% to end at 5,333.55.
Foreign Institutional Investors (FIIs) were the net buyers to the tune of Rs 1,013.55 crores including the provisional figure of March 9 as against the last weekend's level of Rs 1,842.40 crore.
All eyes are now set on the forthcoming Railways Budget on March 14, RBI's mid-quarter review of the monetary policy on March 15 and Union Budget on March 16.
Major losers from the Sensex pack were Hindalco Ind (8.93%), Sterlite Ind (7.14%), Gail (6.17%), Tata Power (5.93%), BHEL (5.85%), Reliance Ind (4.87%), Jindal Steel (3.05%), Tata Steel (2.84%), Bharti Airtel (2.63%), Hero MotoCo (1.75%), Cipla (1.38%), SBI (1.26%) and TCS (1.19%).
However, Tata Motors firmed up by 4.24% followed by NTPC 2.20%, HDFC 1.68%, ITC 1.58%, Maruti (1.43%), Wipro 1.42%, Coal India 1.01%, Icici bank 1.01% and Bajaj Auto 1.00%.
Metal stocks suffered the most after slightly cooling off the Chinese economy as China is world's major importer of copper and aluminium and as a result the sectoral BSE-Metal was the top loser from the sectoral indices with a fall of 3.92%.
Among sectoral indices, the BSE-Oil&Gas tumbled by 3.17% followed by the BSE-Power 2.48% and the BSE-Capital Goods 1.09% while the BSE-Consumer Durable firmed up by 1.77%, the BSE-Auto 1.62% and the BSE-FMCG 0.90%.
The total turnver at the BSE and NSE fell to Rs 11,633.53 crore and 51,549.71 crore, respectively as against the last weekend's level of Rs 15,392.19 crore and Rs 70,694.81 crore.