Mumbai: High inflation and mixed global cues with downward bias induced investors to book profits, mainly in capital goods, IT, realty, refinery and metal stocks, sending the BSE benchmark Sensex down by almost 300 points to 16,785.64 this week. (Agencies)
Below-expectation Q2 results by IT major TCS also hit the sentiment adversely. Engineering and construction major L&T also declared its Q2 performance, which was up to market expectations.
But, the company cut its order growth guidance for the current fiscal, further hampering the market mood.
The market closed in the red four of the five trading days. Had there not been a sharp rise of over 337 points on Wednesday, following good second quarter results by Hero MotoCorp and HDFC Bank amid hopes of steps to resolve the euro-zone debt crisis by European leaders, the fall in the week would have been much more pronounced.
In all, 10 of the 13 sectoral indices ended in the red. Only BSE-Healthcare, Bankex and Consumer Durables finished in the green. As many as 22 out of 30 Sensex-based scrips lost ground.
Food inflation shot up to 10.6 percent for the week ended October 8 from 9.32 percent in the previous week.
According to analysts, it will add to inflationary pressures, prompting the Reserve Bank to further hike lending rate in the second quarterly review of the monetary policy on October 25, in the process fuelling investor concerns.
The Bombay Stock Exchange 30-share barometer, on the first day of the week, logged 3-1/2-week high of 17,188.55.
But it could not maintain the gains and fell back to conclude the week at 16,785.64, a fall of 297.05 points, or 1.74 percent. Last week, it had surged by over 850 points, or 5.24 percent.
Mumbai: High inflation and mixed global cues with downward bias induced investors to book profits, mainly in capital goods, IT, realty, refinery and metal stocks, sending the BSE benchmark Sensex down by almost 300 points to 16,785.64 this week.