Market review: Diwali fails to lift stock mkt
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The BSE benchmark sensex continued to decline for the second consecutive week, tumbling by 374 points to two-month low of 18,309.37 on persistent selling pressure after declaration of domestic economic datas amid dashing hopes of a rate cut by the apex bank.
Samajwadi Party's sudden announcement of candidates for 2014 polls also made investors nervous over the current uncertain political situation.
Traders said investor confidence was also hit after the lukewarm response to the 2G telecom spectrum auction raised concerns over the country's widening fiscal deficit. Eurozone debt worries and depreciation of rupee value value above 55-level against dollar also affected the market sentiment.
The Bombay Stock Exchange (BSE) sensitive index moved in a range of 18,750.92 and 18,266.76 before concluding the shortened week at two-month low of 18,309.37, showing a net loss of 374.31 points or 2.00 per cent.
The BSE and NSE were closed for usual trading on November 13 but were opened for Muhurat trading on the same day for 75 minutes in the evening. The market was closed on November 14 for Diwali holiday.
The NSE 50-share Nifty also dropped by 112.20 points or 1.97 per cent to two-month low of 5,574.05.
Investors also appeared to ignore the Wholesale Price Index (WPI) declining marginally to 7.45 per cent in October.
RBI Governor D Subbarao said Friday that at 7.45 per cent inflation is certainly "quite high", indicating no key rates cut in the next monetary policy meeting, which also impacted negatively on the market sentiment.
Traders said after headline inflation fell to an 8-month low in October, investors had hoped for a rate cut. However, Subbarao's comments poured cold water on such hopes, they added.
For the week, the Sensex and the Nifty were down by about 2 per cent also on concerns over the so-called US 'fiscal cliff', worries over India's fiscal deficit and weak macro data, said Dipen Shah, Head of PCG Research, Kotak Securities.