Weekly market review: Market extends losses for 3rd week, Sensex down 27 points
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Stocks The BSE benchmark Sensex extended losses for the third consecutive week by slipping 27 points to end at 19,468.15 due to persistent selling pressure from operators in view of fall in industrial output and rise in retail inflation.
Dismal corporate earnings by some blue chip companies also dented the market sentiment.
Shares of realty, capital goods, power, metal and consumer durable declined sharply on heavy selling pressure.
Growth in industrial output contracted by 0.6 per cent in December mainly due to muted activities in manufacturing and mining sectors. Retail inflation remained in double digits at 10.79 per cent in January, driven by higher prices of vegetables, edible oil, cereals and protein-based items.
However, WPI inflation dropped to a three-year low of 6.62 per cent in January but the data failed to spur rate cut hopes.
The BSE benchmark Sensex resumed higher at 19,517.59 and moved in a range of 19,723.01 and 19,381.82 before ending at 19,468.15, a loss of 26.62 points, or 0.14 per cent.
The 30-issue index has lost 635.38 points, or 3.16 per cent, in the last three weeks.
The NSE 50-share Nifty also declined by 16.10 points, or 0.27 per cent, to settle at 2013's lowest closing level of 5,887.40. The benchmark has lost 187.25 points, or 3.08 per cent, in the last three weeks.
Brokers said the broader market continued to remain in the negative territory with second-line stocks attracting profit-booking by retail investors ahead of the Budget.
"After disappointing IIP numbers but easing of WPI inflation rate, investors are in a state of uncertainty regarding rate cuts in near future," said Nidhi Sarswat,
Senior Research An alyst, Bonanza Portfolio Ltd.
Meanwhile, global rating agency Moody's said pursuing policies to boost private investments and curbing inflation can help India trim Current Account Deficit (CAD), which hit a record high of 5.3 per cent of GDP in September quarter.