SENSEX 16213.46 -274.78
NIFTY 4866.70
-76.95
USD/INR 0052.24 +00.49
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UPDATEDTIME 09.28 PM 09 DECEMBER 2011
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Sensex
extended losses to the second day and closed 1.7 per cent lower on Friday as
concerns over a slowdown in the economy intensified after the finance ministry
cut the country's growth forecast for the current fiscal year.
The economy is likely to grow by between 7.25 per cent and 7.75 per cent in the fiscal year ending March, sharply lower than the original estimate of 9 per cent, a mid-year review of the economy tabled by the finance minister in parliament showed.
The 30-share BSE index fell 274.78 points to 16,213.46, with 27 of its components in the red. The benchmark fell as much as 2 per cent during the day. The index lost 3.76 per cent for the week.
Shares of index heavyweight Reliance Industries led the losses and fell nearly 3 per cent to end at Rs 755.70, their lowest close since Nov. 25.
"The market has over-reacted to the mid-term review. The lower GDP projections were already known and there is nothing new that you can derive from the review.
"The market should bounce back next week before the RBI reviews its policy on Friday, adding he saw 5,100 as next support level for the Nifty.
The Reserve Bank of India is widely expected to pause its rate tightening cycle next Friday at its monetary policy review as a slowing economy and a fragile global economic environment take centre stage.
Appetite for riskier assets was hit further after India's trade secretary Rahul Khullar said the country was facing a serious balance of trade problem.
Private lender ICICI Bank and HDFC Bank fell 1.77 and 2.2 per cent, respectively.
Brokerage Macquarie said it would continue to be bearish on the Indian banking sector because of deteriorating asset quality and a possible tightening of margins due to an increase in savings rate.
A slew of economic data, including industrial output and headline inflation, is expected next week and will influence stock market moves.
The economy is likely to grow by between 7.25 per cent and 7.75 per cent in the fiscal year ending March, sharply lower than the original estimate of 9 per cent, a mid-year review of the economy tabled by the finance minister in parliament showed.
The 30-share BSE index fell 274.78 points to 16,213.46, with 27 of its components in the red. The benchmark fell as much as 2 per cent during the day. The index lost 3.76 per cent for the week.
Shares of index heavyweight Reliance Industries led the losses and fell nearly 3 per cent to end at Rs 755.70, their lowest close since Nov. 25.
"The market has over-reacted to the mid-term review. The lower GDP projections were already known and there is nothing new that you can derive from the review.
"The market should bounce back next week before the RBI reviews its policy on Friday, adding he saw 5,100 as next support level for the Nifty.
The Reserve Bank of India is widely expected to pause its rate tightening cycle next Friday at its monetary policy review as a slowing economy and a fragile global economic environment take centre stage.
Appetite for riskier assets was hit further after India's trade secretary Rahul Khullar said the country was facing a serious balance of trade problem.
Private lender ICICI Bank and HDFC Bank fell 1.77 and 2.2 per cent, respectively.
Brokerage Macquarie said it would continue to be bearish on the Indian banking sector because of deteriorating asset quality and a possible tightening of margins due to an increase in savings rate.
A slew of economic data, including industrial output and headline inflation, is expected next week and will influence stock market moves.
India's
industrial output likely shrank 0.5 per cent in October from the same month a
year ago, its first decline in over two years, hurt by a slowdown in export
growth, a Reuters poll showed. The data is due on Monday.
Toughening domestic economic conditions have chipped away demand for vehicles, dragging automakers, while engineering and construction firms have warned of deferred projects and slowing investment spending.
Larsen & Toubro, the country's biggest engineering conglomerate, shed 2.65 per cent to close at 1,226.85 rupees, after falling as much as 3.33 per cent intraday.
Shares of Tata Motors, India's third-largest car maker by domestic sales, closed down 2.94 per cent at 183.00 rupees. Fellow automaker Mahindra & Mahindra ended down 3.65 per cent at 703.25 rupees.
The 50-share NSE index fell 1.56 per cent to 4,866.70. In the broader market, there were 2.3 losers for each gainer on a moderate volume of 563.6 million shares.
Shares were under selling pressure in global markets also, with European stock markets falling on fears EU leaders were struggling to come to terms on immediate measures to halt the slide of euro zone government bond markets
Toughening domestic economic conditions have chipped away demand for vehicles, dragging automakers, while engineering and construction firms have warned of deferred projects and slowing investment spending.
Larsen & Toubro, the country's biggest engineering conglomerate, shed 2.65 per cent to close at 1,226.85 rupees, after falling as much as 3.33 per cent intraday.
Shares of Tata Motors, India's third-largest car maker by domestic sales, closed down 2.94 per cent at 183.00 rupees. Fellow automaker Mahindra & Mahindra ended down 3.65 per cent at 703.25 rupees.
The 50-share NSE index fell 1.56 per cent to 4,866.70. In the broader market, there were 2.3 losers for each gainer on a moderate volume of 563.6 million shares.
Shares were under selling pressure in global markets also, with European stock markets falling on fears EU leaders were struggling to come to terms on immediate measures to halt the slide of euro zone government bond markets
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RAKESH MAKIN
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Email:makin_97@yahoo.com
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