Indian markets record fourth weekly loss
Sunday, 19 October 2014
MUMBAI, Oct 18 (Business Standard): Benchmark share indices ended lower for the fourth consecutive week amid worries that uncertainty over global economic growth would impact India and the possibility of higher interest rates in the US may lead to capital outflows from emerging economies such as India.
In the week to October 17, the 30-share Sensex ended down 189 points or 0.7 per cent at 26,109 and the 50-share Nifty ended down 80 points or 1 per cent at 7,780.
However, the broader market witnessed selling pressure with both the BSE Mid-cap and Small-cap indices losing nearly 2 per cent during the week under review.
Foreign portfolio investors were net sellers to the tune of Rs 3,924 on all the four tradings days of the truncated week, as per provisional stock exchange data.
Wholesale Price Index (WPI)-based inflation dropped to 2.38 per cent in September, the lowest since October 2009 (1.78 per cent). WPI inflation stood at 7.05 per cent in September 2013 and 3.74 per cent in August this year.
Further, Consumer Price Index (CPI)-based inflation for September fell to 6.46 per cent, the lowest since the series was launched in January 2012 - driven mainly by a significant drop in food prices and subdued demand for industrial goods.
The BSE Realty index was the top loser down 10 per cent amid sell off in DLF followed by the IT index because of profit taking in TCS.
TCS was the top Sensex loser down 8.7 per cent after the IT major reported lower-than-expected earnings while the management's forecast of a subdued Oct-Dec quarter because of the holiday season also dampened sentiment.
The IT major reported nearly 6 per cent drop in net profit at Rs 52.44 billion for the second quarter ended September 2014 compared with Rs 55.68 billion in the first quarter ended June 2014. Infosys and Wipro ended down 1-3 per cent each.
Metal shares were also among the major losers on concerns that sluggish growth in China, the world's largest consumer may hurt demand while softening commodity prices also weighed on investor sentiment. Hindalco slumped 7 per cent and Sesa Sterlite dropped 6.8 per cent.