For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Benchmark indices, Nifty & Sensex, fall by 2% during the week Aug 22-26

|

Nifty & Sensex falls by 2% during Aug 22-26
The broader indices in India BSE Sensex and S&P CNX Nifty fell by more than 2% during the week Aug 22-26. The markets touched their 19-months low as selling pressure by the Foreign Institutional Investors (FIIs) continued throughout from August 22 - August 26.

The markets started on a positive note on August 22, but this rally did not sustain due to concerns of global growth slowdown and inflation.

 

The benchmark index of the National Stock Exchange, Nifty touched its high of 4,965 mid-week. But it was not able to sustain the selling pressure in the wake of speech by Ben Bernanke of Federal Reserve Chairman. During the week it. Nifty, touched a low 4,720. The index closed at 4,747, down 92 points.

 

Meanwhile the Bombay Stock Exchange benchmark index, Sensex slipped below 16,000 and it managed to close at 15,848. The index was down 298 points.

Falling for the fifth consecutive week, both the benchmark indices witnessed a decline of 2%.

Two reasons were cited by experts for reducing their positions in the stock market. First was the speech by the Federal Reserve Chairman in United States. The second reason was the political situation in the country.

(Read the Speech by Federal Reserve Chairman Ben Bernanke)

Till August 26, 2011, the FIIs have sold more than $2 billion worth of Indian equities.

Announcement of weekly inflation of 9.8% for August 13 showed that inflation has once again inched towards double digits. Meanwhile the India Central bank, Reserve bank of India said controlling inflation is its number priority, more important that growth.

Among the sectoral indices except for the BSE TecK index, all other ended in the negative zone. The loser's list was in order of the rate sensitives. The BSE Metal index dropped 5.2% to 11,145. Meanwhile, BSE Bankex index and BSE Realty index shed 4-5% each. However, the BSE IT index performed better with marginal loss of 0.3% at 4,719.

Coal India which is also a part of the Sensex fell 8.6% on reports that labor unions have demanded a 100% increase in salaries. On the brighter side, from October 10, 2011 Coal India will replace Reliance Capital on Nifty 50.

Tata Steel dropped 8% to its 52-week low (Rs 419) on concerns of the Euro Zone crisis as it is expected to hit sales.

On the banking side, SBI and HDFC Bank fell 5-7% each. Many of the banking stocks, including SBI, dropped to its lowest in 52 weeks on Friday.

However, Bajaj Auto went up by 5% to Rs 1,503 and Bharti Airtel added 4% to Rs 399. BHEL gained 3%, followed by TCS and HUL.

GoodReturns.in

Read more about: bse sensex nse nifty fii capital market
Story first published: Saturday, August 27, 2011, 14:37 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X