Market ends its five week gaining rally

By IANS,

Mumbai : Indian equity markets ended their five week gaining rally in a truncated trading session this week.


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The benchmark index of the Bombay Stock Exchange (BSE), the Sensex, declined 443.64 points or 2.92 percent in the week to close at 14,724.18 Thursday. Friday, Independence Day, was a holiday.

The S&P CNX Nifty index of the National Stock Exchange lost 98.80 points or 2.18 percent in the week to end at 4,430.70.

The BSE mid cap index fell 63.55 points of 1.07 percent at 5,823.42 in the week and BSE small cap index lost 71.30 points or 0.99 percent at 7,110.44.

India’s inflation touched 12.44 percent for the week ended Aug 2 as compared to 12.01 percent for the week before, but that did not have an effect on the stocks as the announcement was made after the markets closed Thursday.

On Wednesday, market regulator Securities Exchange Board of India (SEBI) held a review meeting where it was decided to cut down on the timeline of rights issue to 43 days from 109 days. That did have an adverse effect.

SEBI the markets attarcated $121.20 million in foreign institutional investments during the week.

The week started on a positive note on the back of strong global cues and fall in crude oil prices. The Sensex closed with a gain of 336.10 or 2.22 percent at 15,503.92 Monday and the Nifty rose 90.90 points or 2.01 percent to 4,620.40.

The indices ended lower Tuesday, on the back of poor industrial output data. The Sensex lost 291.79 pints or 1.88 percent to 15,212.13. The Nifty lost 68.15 points or 1.47 percent to 4,552.25.

On Wednesday for the second consecutive day the Sensex closed with a loss of 119.01 or 0.78 percent at 15,093.12 and the Nifty slipped 23.2 points or 0.51 percent at 4,529.05.

The markets extended losses for the third day running after a rise in crude oil prices which rekindled fears of inflationary pressure.

On Thursday the Sensex fell 368.94 points or 2.44 percent to 14,724.18 and the Nifty lost 98.35 points or 2.17 percent to close at 4,430.70.

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