By IANS,
Mumbai: Indian equities’ markets continued to be hobbled by the European debt crisis and domestic concerns such as a weak rupee with a benchmark index, closing the week near to its two-year low, falling for the fourth consecutive week.
Even though some positive news came in like the government allowing foreign equity up to 51 percent in multi-brand retail and latest data showing that food inflation had declined from double digits to 9.01 percent, the underlying worries on slowing domestic growth and weakness in the rupee kept sentiments negative.
The rupee which had fallen to a new record low at 52.73 to a dollar Tuesday on the back of international volatility has lost close to 14 percent since August and closed Friday at 52.23 to a dollar.
During the week, the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) slipped 4.13 percent or 678.08 points and closed Friday at 15,695.43 points.
At the National Stock Exchange, the 50-scrip S&P CNX Nifty also fell 3.99 percent or fell 195.75 points to close the week at 4,710.05 points.
Broader markets also ended in the red. The BSE 500 index closed 3.3 percent lower. The BSE midcap index fell 1.82 percent, while the BSE smallcap index slipped 2.15 percent.
Prominent weekly Sensex gainers included L&T, up 3.3 percent at Rs.1,265.80; Cipla, up 2 percent at Rs.315.95; Coal India, up 1.6 percent at Rs.308.80 and Wipro, up 1.3 percent at Rs.369.60.
Among losers on the benchmark Sensex were: Jindal Steel, down 9.7 percent at Rs.487.75; ITC, down 7.3 percent at Rs.192.25; Sterlite, down 7.2 percent at Rs.100.05 and M&M, down 7.1 percent at Rs.706.30.
Global markets fell on worries of the European region debt crisis as German Chancellor ruled out the possibility of common euro-area bonds. The yield of the struggling countries in the region continues to swell and in a recent bond auction in Germany, the government could not find enough buyers for the targeted amount indicating the crisis is spreading in the region.
Also, rating agency Fitch downgraded Portugal’s credit rating to below investment grade sighting rising debt and weakening economy, while another agency Moody’s cut Hungary’s credit rating to junk.
On a weekly basis, the Japanese Nikkei closed 2.57 percent lower at 8,160.01 points, while Hong Kong’s Hang Seng ended 4.34 percent down at 17,689.48 points.
The Chinese Shanghai composite index shed 1.5 percent and closed the week at 2,380.22 points.
European markets also lost heavily. Britain’s FTSE 100 closed 3.7 percent down at 5,164.65 points, while the French CAC 40 closed 4.67 percent lower at 2,856.97 points.
The German DAX shed 5.3 percent at 5,492.87 points during the week.
Wall Street too ended in the red. The S&P fell 4.69 percent and closed the week at 1,158.67 points, while the Dow slipped 4.78 percent and ended Friday at 11,231.78 points.
The technology-heavy Nasdaq also ended 5.09 percent lower at 2,441.51 points.