Mumbai: In spite of last day recovery on hopes of rate cut from Reserve Bank of India, both the key indices, S&P BSE benchmark S&P Sensex and Nifty ended in the red by over one percent for the second consecutive week on persistent selling pressure following fall in the rupee value to an all-time low.

Fresh capital outflows also affected the market sentiment as Foreign Institutional Investors (FIIs) sold shares worth Rs 2,515.68 crore during the week, including the provisional figure of June 14.

Shares of Consumer Durable, Metal, Realty, Power and PSU sectors declined sharply on selling pressure from operators. The benchmark S&P BSE Sensex resumed higher at 19,530.35 and moved up further to 19,585.75 on select buying mainly in IT sectors in view of depreciation of rupee value to lifetime low of 58.98 against the dollar.

However, it later turned negative and dropped to a low of 18,765.53 on profit-booking before recovering on the last day to end the week at 19,177.93, still showing a loss of 251.30 points or 1.29 percent. It has lost 582.37 points or 2.95 percent in the last two weeks. The NSE 50-share Nifty also dropped by 72.60 points or 1.23 percent to finish at 5,808.40.

Markets recovered at the end of the week due to fag-end buying on expectation of rate cut from RBI in view of fall in inflation after WPI inflation fell to over three-and-half-year low to 4.7 percent in May. Finance Minister P Chidambaram's comment that government would announce steps soon to boost investment and growth also supported the market during the fag end of the week.

(Agencies)

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