Weekly roundup: BSE Sensex falls for 2nd-straight week; down 251 points
New Delhi: Indian stock market snapped a three-session losing streak to gain nearly 2 percent on Friday, although it was not enough to prevent it from posting its second consecutive weekly fall.
Continued fall in rupee against the dollar, weakness in global stocks coupled with slow growth in industrial production in April hit sentiment.
The S&P BSE Sensex, however, managed to settle above the psychological 19,000 mark after alternately moving above and below that mark during the weak.
In the week ended Friday, 14 June, the 30-share S&P BSE Sensex dropped 251.30 points or 1.29 percent to 19,177.93. The 50-unit CNX Nifty fell 72.60 points or 1.23 percent to 5,808.40.
The S&P BSE Mid-Cap index fell 3.24 percent while the S&P BSE Small-Cap index fell 3.18 percent. Both these indices underperformed the Sensex.
Investors are now looking ahead at the Reserve Bank of India’s policy review on Monday as the next key trigger, along with movements in global markets.
Although most analysts expect the central bank to keep rates on hold, an outside chance was seen after India’s headline inflation slowed for a fourth straight month in May to 4.7 percent from a year earlier.
US Federal Reserve’s outlook on its bond buying programme and the pace of foreign institutional investment flows would also be key in determining the direction of the market next week.
Fears the US Federal Reserve could begin reducing its bond buying later in the year have fuelled a selloff in global markets this week, which has bruised stocks, bonds, emerging market assets and the dollar alike.