Sensex Loses 722 Points; Slumps to Two-Year Low


Mumbai, Dec 17 (IANS): Indian equities markets benchmark indices slumped to over two-year low this week on continued uncertainties in domestic and global economies.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) tumbled 4.45 percent or 722.11 points in the weekly trade.

At the beginning of the week, investors' sentiments were dampened due to poor economic data.

The benchmark Sensex slumped 343 points Monday, the first trading day of the week after the official data released that day showed factory output slumped to minus-5.1 percent in October, sparking off fears of a further slowdown in economic growth.

The markets witnessed volatile trading in the middle of the week and fell sharply by the end of the week on panic selling.

The Sensex slumped 345.12 points or 2.18 percent to close at 15,491.35 points Friday, the lowest level in 25 months.

At the National Stock Exchange, the 50-scrip S&P CNX Nifty also tumbled to two year-low even though the Reserve Bank of India kept interest rates unchanged.

The Nifty closed 2 percent or 94.75 points down at 4,651.6 points Friday.

In its mid-quarter review of the monetary policy, the Reserve Bank of India Friday maintained the status quo on key policy rates. Banking stocks tumbled as some analysts were expecting a cut in cash reserve ratio (CRR), while the RBI decided to maintain status quo.

The central bank also indicated that it would from this point onward look at easing interest rates as inflation had started declining and was expected to moderate to 7 percent by end-March.

Major Sensex losers Friday were: L&T, down 5.33 percent at Rs.1,075.80; Sterlite Industries, down 4.28 percent at Rs.89.40; NTPC, down 3.91 percent at Rs.159.90; and BHEL, down 3.88 percent at Rs.240.45.

Only three of the 30 Sensex scrips saw modest gains: Wipro, Maruti Suzuki and Infosys.

Most other Asian markets also closed in the red with negative sentiments gripping the bourses. A survey released Thursday by Japan's central bank showed business sentiment dipping. Also a bond auction by Italy saw the country paying a higher rate of interest, signifying continued nervousness about the eurozone's debt woes.

The Japanese Nikkei nudged up 0.29 percent to close at 8,401.72 points. Hong Kong's Hang Seng moved up 1.43 percent and ended at 18,285.39 points, while the Chinese Shanghai composite index rose 2.02 percent to close at 2,224.84 points.

European and American markets also ended the week on negative note.

Britain's FTSE 100 closed 0.25 percent down at 5,387.34 points Friday. German DAX fell 0.50 percent at 5,701.78 points and the French CAC 40 closed 0.88 percent down at 2,972.30 points.

The US Dow Jones Industrial Average closed 0.02 percent down at 11,866.40 points. However the S&P 500 index closed 0.32 percent higher at 1,219.66 points Friday.

  

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Title: Sensex Loses 722 Points; Slumps to Two-Year Low



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