The domestic benchmark indices closed the last day of the week on a disappointment note with heavy selling witnessed across the major sectoral indices. The sentiments turned bearish following the cautious outlook about the global economic environment outlined by Infosys while announcing the second quarter results. Moreover, the selling pressures were further intensified by the rise in the inflation figures, stoking fears that the RBI will go for further monetary tightening. The wholesale-price index rose 8.62% in September 2010 from a year earlier as against the annual rise of 8.5% in August 2010, the latest government data showed. Moreover, the annual reading for July 2010 was revised upwardly to 10.31%. Moreover, a separate data showed the food inflation rose marginally to 16.37% for the week ended October 2, 2010 as against 16.24% for the week ended 25 September 2010 and this was on the back of higher prices of cereals, fruits, select vegetables and milk. The key benchmark indices after opening the day's session in positive terrain failed to sustain the momentum and plunged below the baseline tracing weak cues from the global space. Most Asian markets edged lower on Friday, 15 October 2010, with banking stocks in Seoul and Sydney weighing on those markets. Moreover, the US stocks the other night ended slightly lower on Thursday, as investors retreated from financials because of concerns over banks foreclosure practices. Heavy selling was witnessed across the blue-chips on profit booking after a recent upward rally. However, the IT stocks faced the heat after sector bellwether Infosys cautioned about the global economic environment at the time of announcing Q2 September 2010 results before trading hours today. Both the NSE Nifty and BSE Sensex remained in the negative territory for most part of the day finally closed below the 6,065 mark, while the BSE Sensex ended near the 20,120 level.
Heavy selling pressures across the sectoral indices led the benchmark indices to close on a weak note. After a marginal gap up opening, the domestic market edged lower amid a bout of volatility in early trade. The market came off the lower level after touching the days low in morning trade. Further, the market tumbled to a fresh intraday low in early afternoon trade. The market extended losses in afternoon trade to touch days low on heavy selling in late trade. On Wednesday, On Thursday, the U.S. markets fell slightly after an unexpected increase in jobless claims and with financials under pressure amid probes into banks foreclosure practices. Bank stocks led the market lower in the morning as concerns about investigations into foreclosure proceedings by state regulators weighed on the sector. The Dow Jones Industrial Average (DJIA) closed with a loss of 1.51 points or 0.01% at 11,020.40, while NASDAQ index finished lower by 5.85 points or 0.24% to 2,435.38. The S&P 500 (SPX) closed down by 4.29 points or 0.36% to 1,173.81.
Among the Sensex pack, 1 stocks ended in positive while 29 ended in the negative terrain. The overall market breadth reflected similar weakness as out of total 3,110 stocks traded on BSE, 2,023 stocks declined whereas 976 stocks advanced and 111 stocks remained unchanged.
The BSE Sensex closed down by 372.59 points or (1.82%) at 20,125.05 and NSE Nifty ended lower by 114.70 points or (1.86%) at 6,062.65. BSE Midcap closed with a loss of 102.84 points or (1.22%) at 8,311.66 while BSE Smallcap closed lower by 78.83 points or (0.74%) at 10,629.65. The BSE Sensex touched intraday high of 20,578.45 and intraday low of 20,090.18.
Losers from the BSE Sensex pack were - Wipro (3.58%), TCS (3.52%), Infosys (3.39%), Hero Honda (3.19%), Bharti Airtel (3.10%) and SBI (3.00%).
On the macroeconomic front, Reserve Bank of India said it may intervene in the currency markets to shield exporters as capital inflows this year fueled a rally in the rupee, making it the best performer in Asia i