Sensex posts worst weekly fall in 2015; down 945 points

NEW DELHI: The world's unluckiest day spooked the Sensex, which slipped by as much as 427 points in trade, weighed down by banking stocks after data showed that consumer inflation has edged up. The numbers raised concerns about rate cuts and sent bond yields higher.

"The fall in bank Nifty is largely on account of bond yields. The bond yields have shot up and because the bond yield remaining on a higher side it would not have a favourable impact on the rate cut on to mark to market portfolio of the banks," says Choksey, of KR Choksey Securities.

"This would probably keep some amount of profit under check as far as this quarter is concerned which otherwise would have remain on a higher side and that is where we are seeing a larger amount of sell off in the Bank Nifty," he adds.

The S&P BSE index closed 1.48 percent lower or 427.11 points at 28,503.30 after gaining as much as 0.9 percent earlier in trade today. However, on a weekly basis the benchmark index recorded a fall of 945 points or 3.2 per cent from its closing value of 29448.95 recorded on 5th March 13, 2015.

The 50-share Nifty index finally closed at 8647.75, down 1.4 per cent or 128.25 points. For the week, the index posted a loss of 290 points or 3.24 per cent, from its closing value of 8937.75 recorded on 5 March 2015.

The benchmark index has already slipped as much as 1521 points from its record high of 30024.74 hit earlier in the month of March. Pressure on rupee, concerns over key bills and sooner-than-expected interest rate hike by the US Federal Reserve made investors cautious.



Apart from global and local concerns, analysts across brokerages feel that market valuations appear stretched in the near term and investors who are holding stocks with gains of over 20 per cent should book profits and buy later on declines.

Even the broader market was not spared this week. Both S&P BSE Midcap and small cap indices suffered a cut of more than 2 per cent each. On a weekly basis, S&P BSE Mid-Cap closed 2.1 per cent lower, while S&P BSE Small-Cap sheds 2 per cent.

For the week, top Nifty losers include stocks like - L&T (down 7.2%), IDFC (down 7.1%), Sesa Sterlite (down 6.6%). Nifty Gainers included stocks like - Bharti (up 15%), NMDC (up 2.4%), DLF (up 2.9%), and Lupin (up 2.2%).

Midcap gainers include stocks like Natco Pharma (up 46.7%), Aarti Industries (up 21.2%), BF Utilities (up 12%), Rajesh Exports (up 15.2%), and Sintex Industries (up 10.1%).

Bank Nifty suffered the most in the week, down 5 per cent, followed by the BSE Banking index which also took a hit of 4.9 per cent, and BSE Capital Goods index slipped 5 per cent. However, Consumer Durable index managed to buck the trend and closed 1.2 per cent higher on a weekly basis.