Sensex logs worst weekly loss in 3 years, falls 1,107.42 pts
Mumbai, Dec 13 (PTI) In its biggest weekly loss in three years, the BSE benchmark Sensex extended its falling trend for the second consecutive week by plunging 1,107.42 points due to all-round selling pressure in view of declining crude prices and caution ahead of key macroeconomic data.
Shares of refinery, capital goods, realty, metal, power, IT and Teck sectors were the pacesetters in the decline.
Losses in RIL, ONGC and Gail India weighed on benchmark indices following fall in global oil prices.
A sustained drop in oil, which will hit margins of petroleum firms, is being seen as a sign of weakness in the global economy, traders said.
Strong US job growth that may prompt the Federal Reserve to speed up interest rate hikes in the world’s largest economy also weighed on the sentiments.
Market sentiments were also affected by a major development in which Infosys co-founders N R Narayana Murthy, Nandan Nilekani, K Dinesh and S D Shibulal sold a total 3.26 crore shares of the company in bulk deals on December 8.
Worries over the slowdown in capital inflows ahead of Christmas holidays also weighed on the market as on the last four days of the week FPIs were net sellers. They picked up shares worth Rs 4,984.53 crore (reflection of block deal of Infosys at NSE) but sold stocks worth Rs 1,743.75 crore in the last four days.
The Sensex resumed almost stable and touched a high of 28,454.85 before falling back to 27,320.05. It concluded at more-than six-week low of 27,350.68, disclosing a sharp fall of 1,107.42 points of 3.89 per cent — the worst weekly drop since December 2011.
It has dropped by 1,343.31 points or 4.68 per cent in the two weeks.