Mumbai: A string of negative factors weighed heavily on market as both benchmark indices, S&P Sensex and CNX Nifty, came off their nearly 30-month highs and tumbled 2.9 per cent and 3.3 per cent respectively during the week under review, snapping a five-week rally. Profit booking at higher levels, mainly impacted by dismal earnings data from some of the frontline companies, and weak global cues also put pressure on the market.
The comments from Federal Reserve Chairman on possible scale down in US monetary stimulus programme sent jitters across the global stock markets, including India, on Thursday. Weak manufacturing data from China, world's second-largest economy, also aided the fall in domestic shares.
The slump was also attributed to the drop in fourth quarter earnings of top corporates like L&T and State Bank of India.
The week saw across-the-board hectic selling mainly in realty, capital goods, power, refinery, PSUs, pharma and banking sectors.
Selling was so strong and widespread that 12 of the 13 sectoral indices ended in the red, losing between 11.54 per cent and 0.34 per cent. Only BSE-IT index ended with gains.
On first day of the week, the Bombay Stock Exchange 30-share benchmark index touched a high of 20,443.62. But it later started losing ground and declined to a low of 19,568.49 before settling the week at 19,704.33, posting a net fall of 581.79, or 2.87 per cent.
In one of the biggest gaining string of the current calendar year, the Sensex, in the last five weeks, had zoomed by a whopping 2,043.56 points, or 11.20 per cent.
The broad-based 50-issue CNX Nifty of the NSE tanked by 203.75 points, or 3.29 per cent, to close the week at 5,983.55. Looking at the forthcoming expiry of derivatives contract on May 30 next week, the market will remain in volatile mode as per analysts. 24 scrips out of the 30-share Sensex pack ended higher while other finished with losses. SBI was the top loser from the sensex pack with a fall of 11.27 per cent followed by L&T 10.23 per cent, Bharti Airtel 5.19 per cent, BHEL 4.22 per cent, Cipla 3.86 per cent, Gail India 4.46 per cent, HDFC Bank 2.37 per cent, Hero MotoCorp 3.03 per cent, Hindalco 2.76 per cent, ICICI Bank 2.00 per cent, ITC 1.40 per cent, Jindal Steel 5.58 per cent, Maruti Suzuki 2.46 per cent, M&M 1.84 per cent, ONGC 4.42 per cent, RIL 5.57 per cent, Tata Motors 4.99 per cent, Sterlite Ind 3.23 per cent, Tata Power 2.66 per cent and Wipro 2.13 per cent.
However, Coal India, HDFC, HUL, Sun Pharma, Tata Steel and TCS closed with marked to moderate gains. Among sectoral indices, the S&P BSE-Realty tumbled by 11.54 per cent, S&P BSE-CG by 8.00 per cent, S&P BSE- Power by 5.28 per cent, S&P BSE-Oil & Gas by 5.12 per cent, S&P BSE-PSU by 4.75 per cent, S&P BSE-HC by 4.74 per cent and S&P BSE Bankex by 4.09 per cent.
Although the Indian rupee came off from over its eitht-month intra-day low of below 56-mark, it closed down by 75 paise at six-month low of 55.63 on sluggish local equities amid sustained dollar demand from importers and some banks, extending losses for the third straight week.
At the Interbank Foreign Exchange (Forex) market, the local unit commenced the week lower at 55.06 a dollar from last weekend's close of 54.88 and immediately touched a high of 54.80.
Later, it continued to decline and touched a low of 56.01 before concluding the week at 55.63, showing a fall of 75 paise or 1.36 pct. In straight three-week of losing string, it has slumped by 169 paise or 3.13 pct.
The Indian rupee closed week sharply lower by almost 582 points or 2.87 per cent, snapping five-week of rising trend while FIIs pumped in over $1.0 billion in the first four days of the week, as per Sebi data.
On May 17, global agency Standard & Poor's threatened to downgrade India's rating to 'junk' status if it fails to pursue reforms, keeping the rupee under pressure.
"The fall in rupee was expected after S&P's warning to downgrade the Indian economy to junk status on Friday.
Also a bearish stock market and weakening in euro and Japanese yen against the dollar also dampened the rupee sentiment today," said N.S. Venkatesh, Head (Treasury) at IDBI Bank.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "Rupee continued to trade low consecutively for the third week against dollar mainly taking cues from local equities which traded weak this week. Steep decline in the dollar and weakness in global equities also weighed on the rupee. Dollar demand from gold and oil importers further weakened the Rupee and traded at eight month low this week, first time since September 2012; it depreciated over one per cent last week. The trading range for the same is expected to be within 55.35 to 55.85 for Monday."
"Rupee at this stage is expected to depreciate against strong dollar. Pivot point for the Pair is at 55.50 and below is the Support and Resistance levels," he added.
Gold extends gains
Gold prices improved further at the domestic bullion market here on sustained low-level demand amid wedding season offtake.
Silver also firmed up owing to steady industrial demand. Standard gold of 99.5 per cent purity edged higher by Rs55 to end at Rs26,525 per 10 gm from Friday's closing level of Rs26,470.
Pure gold of 99.9 per cent purity moved up by Rs30 to finish at Rs26,655 per 10 gm from Rs26,625. Silver ready (.999 fineness) strengthened by Rs115 to conclude at Rs44,700 per kg as against a value of Rs44,585 on Friday.
Meanwhile in overseas markets, the shiny metal ended modestly lower on investors selling ahead of a long US weekend despite weak dollar valuation.
Gold for June delivery fell $5.30 to settle at $1,387.50 an ounce on the Comex division of the Nymex late on Friday. Silver July contract softened to close at $22.50 an ounce.