The BSE benchmark Sensex failed to maintain last week’s gains and slipped 284 points due to fresh selling pressure, mainly in refinery, banking, realty, metal and auto counters, in view of persistent capital outflows from foreign funds.
The Bombay Stock Exchange 30-share barometer resumed up at 15,782.77 and immediately hit a high of 16,049.12, but ended the week at 15,454.92, showing a net loss of 283.78 points, or 1.80 per cent, from its last weekend’s level.
During 2011, the Sensex has tumbled 5,054.17 points, or 24.64 per cent, eroding Rs 20 lakh crore in investor wealth.
The 50-issue index Nifty of the National Stock Exchange also dropped 89.70 points, or 1.90 per cent, to end the week at 4,624.30. The index tumbled 1,510.20 points, or 24.62 per cent, during the year.
Sensex moved between the positive and the negative terrain throughout the week in view of volatility as traders rolled over positions in futures & options (F&O) segment from the near-month Dec 2011 series to Jan 2012 series.
Amid lack of any major trigger from the overseas markets due to Christmas holidays, operators preferred to book profits at the fag end, leading to fall.
Top heavyweight RIL was the major contributer to the Sensex fall on reports that gas output from the petro-chem giant’s eastern offshore KG-D6 gas field declined to a fresh low during the week ended December 18.
Metal stocks were the worst performers because of investor concerns over weak global economic outlook, while interest rate-sensitive banking stocks ended lower on fears of an increase in bad loans and declining growth.
Reports that the Indian and Mauritian tax officials have begun talks on revising the Double Taxation Avoidance Treaty also affected the market sentiment. Several companies use the Mauritius route to invest in India to avoid paying taxes.
Among the major indices, the BSE-Oil & Gas fell 5.01 per cent, followed by Bankex - 3.94 per centc, Realty - 3.64 per cent, Metal - 2.50 per cent, Auto - 1.66 per c ent, FMCG - 1.29 per cent and Capital goods - 1.13 per cent. However, Teck and IT indices shot up 1.59 per cent and 1.34 per cent
Major losers from the Sensex pack were RIL (7.17 %), Jindal Steel (6.77 %), DLF (5.62 %), Maruti Suzuki (5.58 %), ICICI Bank (5.17 %), Hindalco (4.93 %), Tata Steel (3.46 %), Tata Motors (3.38 %), Cipla (3.34 %), HDFC Bank (2.41 %), Jaiprakash Asso (2.33 %) and Sterlite (2.13 %).
However, Bharti Airtel shot up 3.77 %, Hero MotoCorp — 2.95 %, Infosys — 2.60 % and NTPC — 1.32 %.
The total turnover at BSE and NSE fell to Rs 6,898.25 crore and Rs 32,608.07 crore respectively, from the previous week’s level of Rs 9,520.37 crore and Rs 46,770.16 crore