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Dec 28, 2014

Sensex falls 130 points duing the week

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BSE Sensex
Sensex falls 130 points during the week

After logging one and half week high on the firs day of tgee week, the benchmark S&P BSE Sensex fell by 130 points to end the holiday – shortened week at 27,241.78 on sustained heavy sell- off by foreign funds amid profit – booking as this month’s derivatives contract expired on December 24.

Both stock markets - the BSE and the NSE remained closed on December 25 on account of “Christmas”. The market got no major trigger from overseas markets, following the Christmas atmosphere.

However , expectations of hike in interest rates by the US Federal Reserve as the American economy grew the fastest in more than a decade in third quarter , influenced sentiments.

Besides, it will strengthened the dollar and affect the inflows in emerging markets negatively, including India. It also resulted in profit booking by wary operators and retail investors. The market also suffered a setback after the government was unable to get pass key legislative reform bills during the winter Session of Parliament.

Failure to pass the GST Bill till now has led to market disappointment as it had discounted the successful approval of the Bill in the current session itself. Besides, market s gave a mixed response to Jharkhand and Jammu & Kashmir election outcome .

The BSE 30-share barometer resumed the week higher and touched 1-1-/2-week high of 27,851.10 after Finance Minister Arun Jaitley’ s statement that India could well achieve 6 per cent GDP growth next fiscal and a vision to achive 9-10 per cent economic growth afterwards, cheered participants. Later, it fell back to one- week low of 27,091.38, before concluding the week at 27,241.78, down by 130.06 points, or 0.48 per cent. The 50-issue CNX Nifty of the NSE moved in a range of 8,364.75 and 8,147.95 before settling at 8,200.70, a net fall of 19.65 points , or 0.24 per cent.

December 23 and 24 saw heavy profit- booking as December 24 was the last day of expiry of derivatives contract, chiefly in IT, oil & gas and capital goods shares , ignoring government approving the ordinance route to implement insurance and coal reforms . Meanwhile , the union Cabinet approved promulgation of the Ordinance on insurance bill, re-promulgation of the coal Ordinance along with 100 per cent FDI in medical devices sectors.


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