Mumbai: The BSE Sensex ended in the red for the second consecutive week, slipping 4.45 percent during the week, due to all-round selling pressure triggered by negative industrial growth in October. (Agencies)
The rate pause by the Reserve Bank of India (RBI) policy review failed to enthuse the market, which also was expecting a cut in CRR to infuse liquidity in the system.
Industrial output as measured by IIP registered a negative growth of 5.1 percent in October - lowest in over two years - due to rising interest rates, high prices and global uncertainties. Factory output had grown by 11.3 percent in October last year.
The BSE Sensex fell 722.11 points or 4.45 percent to more that 2-year closing low at 15,491.35 as against the previous weekend's level of 16,213.46. It has lost 1,355.48 points or 8.05 percent in the last two weeks.
The 50-share S&P CNX Nifty fell by 215.10 points or 4.42 percent to finish at 4,651.60.
The BSE Mid-Cap index fell by 6.11 percent while the BSE Small-Cap index fell 6.03 percent.
RBI left its main lending rate unchanged in order to support faltering economic growth as inflation shows signs of cooling. It also refrained from cutting the cash reserve ratio (CRR) from 6 percent, despite tight liquidity in the system.
Persistent selling pressure from foreign funds also affected the market sentiment. Index heavyweight Reliance Industries (RIL) fell 4.30 percent to Rs 723.
Engineering and construction major L&T slumped 12.32 percent to Rs 1,075.80. Shares in capital goods sector slumped after the recent data showed that capital goods production shrank 25.5 percent in October 2011 from a year earlier.
India's second largest private sector lender HDFC Bank declined by 6.49 percent to Rs 415.95. India's largest private sector bank ICICI fell 7.59 percent to Rs 676.05. The stock hit a 52-week low of Rs 667 on Friday.
India's largest, state owned lender SBI fell 9.84 percent to Rs 1,680.45.
Other losers from the Sensex pack were Sterlite (11.83 pc), DLF (8.97 pc), Tata Steel (8.36 pc), Tata Power (7.35 pc), Jaiprakash (6.79 pc), M&M (6.32 pc) and Bharti Airtel (6.24 pc).
However, HUL was up 1.70 percent and Cipla (1.81 pc).
Among the major indices, the BSE-Capital Goods dropped by 10.30 percent, Consumer Durables by 8.38 percent, Realty by 8.22 percent, Bankex by 7.25 percent and Metals by 7.08 percent.
Total turnover at BSE and NSE rose to Rs 10,050.38 crore and Rs 50,279.35 crore respectively as against the previous weekend's level of Rs 8,808.57 crore and Rs 38,674.95 crore.
Mumbai: The BSE Sensex ended in the red for the second consecutive week, slipping 4.45 percent during the week, due to all-round selling pressure triggered by negative industrial growth in October.