Sensex posts worst weekly drop since Dec 2011

Disappointment over Modi govt’s maiden Budget and debt fears in Portugal triggers huge sell-off

Mumbai : The benchmark Sensex frittered away early gains and tanked 348 points to log its worst weekly drop since December 2011 on disappointment over Narendra Modi government’s maiden Budget and debt concerns in Portugal.

In straight four days of decline, the 30-share Sensex has shed a massive 1,075.73 points, or 4.12 per cent. Investor wealth worth over Rs 5 lakh crore has been eroded in this extended sell-off. For the week, the BSE barometer has slumped 937.71 points, or 3.61 per cent.

Realty, capital goods, power, metal, refinery and banking shares mainly dragged down the Sensex. IT shares, however, saw buying interest after Q1 results by Infosys.

Fresh concerns over Eurozone debt resurfaced as reports said Portugal’s biggest listed bank, Banco Espirito Santo, missed debt payments. Coupled with Budget disappointment, the Sensex then succumbed to heavy selling and tumbled to a low of 24,978.33, before ending at over 1-month low of 25,024.35 — a fall of 348.40 points or 1.37 per cent over Thursday.

The 50-issue CNX Nifty moved in a wide range of 7,625.85 and 7,447.20 before settling at 7,459.60, a net fall of 108.15 points or 1.43 per cent.

Profit-taking continued in cyclical stocks, as a result of which major players such as BHEL, DLF, Hindalco, State Bank of India, Bank of Baroda, Punjab National Bank, Tata Power, Tata Steel, L&T and HDFC ended 3-8% lower.

Next week, the benchmark indices will take cues from economic data and earnings of companies for the quarter ended June. The trend in global markets will also be watched.

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