Mumbai, Sep 24 (IANS): A benchmark index for Indian equities slumped almost five percent this week on turmoil in the global bourses after the US Federal Reserve said the world economy could slide into another recession.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) tumbled 4.56 percent or 771.77 points in the weekly trade. The 30-scrip index slumped 1.22 percent to close at 16,162.06 points Friday, the last trading day of the week.
This is the first weekly loss in the benchmark Sensex in the last four weeks.
The markets started the week on a negative note but rebounded smartly on the second trading day of the week.
However, the Sensex crashed 704 points or 4.13 percent Thursday, its worst fall in two-years, on global rout after the US Federal Reserve painted a gloomy outlook for the United States and the world economy.
The sentiments remained weak Friday as well. Markets across the world continued their slide on the last trading day of the week, with India's benchmark Sensex closing 1.22 percent down.
At the National Stock Exchange, the 50-scrip S&P CNX Nifty also fell almost five percent in the weekly trade. The Nifty closed 1.14 percent down at 4,867.75 points Friday, after a 4.08 percent loss the previous day.
"The bias is downward with Nifty support at 4,700 points, and if it breaks then we should be even prepared to see 4,300 points," Kishor P. Ostwal, Chairman and Managing Director of a capital market research firm CNI Research Ltd.
"On upper side 5,170 points is resistance, we can see Nifty touching 5,500 only if it crosses 5,170," Ostwal said.
Major Sensex losers Friday were: Tata Motors, down 4.81 percent at Rs.147.40; HDFC Bank, down 3.1 percent at Rs.457.65; L&T, down 2.7 percent at Rs.1,452.25 and Hero MotoCorp, down 2.45 percent at Rs.2,037.65.
The gainers were Cipla, up 2.09 percent at Rs.283.85; SBI, up 1.03 percent at Rs.1,955.50; Bharti Airtel, up 0.77 percent at Rs.374.85 and Sun Pharma, up 0.59 percent at Rs.471.10.
World markets slumped on panic selling this week.
Among the other Asian markets, Hong Kong's Hang Seng index closed 1.36 percent down at 17,668.83 points Friday after a drop of almost five percent the previous day. Chinese Shanghai Composite index ended 0.41 percent lower at 2,433.16 points Friday after slumping almost three percent Thursday.
The Japanese Nikkei closed 2.07 percent lower at 8,560.26 points Thursday. The Japanese markets were closed Friday on account of a holiday.
European as well as American markets slumped Wednesday and Thursday. The US markets registered biggest weekly loss since 2008. The Dow Jones Industrial Average slumped 6.4 percent and the S&P 500 index lost 6.5 percent in the weekly trade.
However, the markets recovered Friday with most of them closing in the positive territory.
Britain's FTSE100 index closed 0.50 percent higher at 5,066.81 points, the German DAX rose 0.63 percent to 5,196.56 points and the French CAC 40 advanced 1.02 percent higher at 2,810.11 points Friday.
The Dow Jones Industrial Average of United States closed 0.35 percent higher at 10,771.50 points and S&P 500 index rebounded 0.61 percent to close at 1,136.43 points Friday.