Indian equity markets fall for seventh consecutive week

Calcutta News.Net
Saturday 5th July, 2008 (IANS)

Indian equity markets recorded their seventh consecutive week on the decline, due to rising crude oil prices, inflation worries and looming political uncertainty. Out of the five trading sessions in the week, three ended in the negative.

Inflation touched a new high of 11.63 percent in the 12 months for the week ended June 21, compared to 11.42 percent the previous week.

The 30-share BSE benchmark index - Sensex - fell 348.22 points or 2.52 percent to 13,454 during the week. The broader-based S&P Nifty lost 120.65 points or 2.91 percent to 4,016.

The BSE Mid-Cap index declined 280.51 points or 5.04 percent to 5,278.24, while the Small-Cap index slumped 488.40 points or 7.03 percent to 6,449.67.

'It seems oil and inflation have become informal standards for traders,' said Ashok Jainani, research head of Khandwala Securities.

He said if the political uncertainty blows over, it could act as a 'positive trigger for the market'.

According to market regulator Securities and Exchange Board of India (SEBI), the Indian equities market attracted investments of $360.5 million (about Rs.14.42 billion) during the week.

Trading for the week started on a weak note, with the Sensex plunging 340.62 points or 2.47 percent to 13,461.60, and the S&P Nifty falling 96.1 points or 2.32 percent at 4,040.55 Monday, the first day of a trading week.

The Sensex continued its losing streak on Tuesday

It plunged 499.92 points or 3.71 percent to 12,961.68 and the Nifty was down 158.8 points or 3.56 percent at 3,896.75.

The market staged a strong comeback Wednesday. The Sensex surged 702.94 points or 5.42 percent to 13,664.62, while the Nifty rose 196.6 points or 5.05 percent to 4,093.35.

But Thursday, a surge in oil price to a record high of above $144 a barrel, coupled with an overnight fall in US stocks, weighed on investor sentiment.

The Sensex slumped 570.51 points or 4.18 percent to 13,094.11, and the Nifty was down 167.6 points or 4.09 percent at 3,925.75.

The market gained on the last day of the trading session Friday, shrugging off higher inflation. The Sensex rose 359.89 points or 2.75 percent to 13,454 and the Nifty was up 90.25 points or 2.30 percent at 4016.

The country's largest private sector company in terms of market capitalisation Reliance Industries (RIL) fell 3.80 percent to Rs.2,099 in the week.

India's second largest private telecom services provider by sales, Reliance Communications (R-Com), fell 7.46 percent to Rs.438.20. The stock hit a 52-week low of Rs.381.05 during the week.

The largest private sector lender ICICI Bank lost 8.03 percent to Rs.600.65 in the week.

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