The Sensex posted its first weekly fall in 2012 on Friday, sliding two per cent over five sessions, as investors booked profits on renewed worries about rising global oil prices and the country’s widening fiscal deficit.
Lenders, such as State Bank of India, ICICI Bank and HDFC Bank were the big losers, as expectations for a rate cut in March were tempered by the rally in global oil prices, which could make it difficult for the Reserve Bank of India to ease policy. Leading mortgage lender Housing Development Finance Corp fell as much as 6.2 per cent after Citigroup Inc sold its entire stake in the company for about $1.9 billion.
The Sensex fell 0.86 per cent, or 154.93 points, to close at 17,923.57, with 16 of its components losing value. The benchmark has gained over 16 per cent since the end of December.