Markets tumbled this week on crisis in the Middle East and political tussle among two parties in India. A severe earthquake in Japan on Friday dampened sentiments further.
The BSE Sensex shed 312 points (1.6%) through the week to end at 18,174. Through the week the index remained weak and touched a low of 18,058.
The NSE Nifty dropped 94 points this week to settle at 5,445. Earlier in the week, the index had touched a low of 5,408 before recovering to a high of 5,563. However, with global factors weighing down, the index slipped once again to end with 1.7% loss.
The beginning of the week saw lacklustre trades as global markets slipped. Back home, concerns that the DMK may pull out its support from the Congress made investors jittery as it could negatively impact scam tainted Congress. However, the next day saw the two parties clinch a seat sharing deal for the forthcoming assembly polls in Tamil Nadu (TN), ending a crisis that threatened to slow planned reforms by the Congress-led United Progressive Alliance (UPA) coalition government at the Centre.
Investors worried that the crisis in Libya may spread to other countries even as Gaddaffi refused to step down. With the turmoil continuing, crude supply took a hit and prices soared. The Organisation of Petroleum Exporting Countries (OPEC), however, said that they will increase supply if the demand arises, but as of now no need for an emergency meeting is felt. The groups decision has calmed fears that oil prices could go up further.
Thursday saw global bourses drop as a ratings downgrade on Spain and Europe dampened sentiments. Moody's Investors Service cut its rating on Spanish sovereign debt.
On Friday, a massive earthquake hit the northern coast of Japan, followed by a tsunami attack in which thousands lost their lives and infrastructure and property were destroyed. Shortly afterwards, an oil refinery in Japan caught fire and the government had to announce a nuclear power emergency in Japan.
All the sectoral indices dropped in trades, barring the Oil & gas index which rose 0.7% to 9,719.
ONGC gained 4.7% to Rs 281. ONGC's upcoming Rs 14,000 crore follow-on-public offer (FPO) may be postponed until May or June 2011
Oil India advanced 2.2% to Rs 1,270. Market heavyweight, Reliance Industries advanced 1% to Rs 992.
Reliance Communications jumped 3.2% to Rs 96 on reports that it may save over Rs 500 crore in annual interest cost after securing aggregate financing of Rs 8700 crore from a Chinese bank.
Among other gainers were IT heavyweight, Wipro, which signed 5-year IT contract with state-run Canara Bank to provide its banking solution to three of the lender's rural banks. The stock went up 1.6% to Rs 449.
BSE capital goods tumbled 3% to 12,559. Metal, bankex and auto were the othe major losers in the market.
Metal stocks fell mirroring movement in the London Metal Exchange. Infrastructure stocks slipped as the investors feared that RBI may raise key rates in its mid-quarterly review in the coming week.
Tata Steel shed 5.7% to Rs 582 as Group Director said that expenses on key raw material are likely to go up by $1 billion in the current fiscal to $7 billion due to a rise in input costs.
BHEL, TCS and SBI slumped 5% each. Maruti Suzuki, Jindal Steel, Larsen & Toubro, Sterlite, HUL and HDFC shed 3-4% each. among other losers were M&M, Cipla, NTPC, Hindalco and HDFC Bank.
The markets would be looking towards the RBI mid-quarterly review on March 17 and the fourth quartr advance tax payment installment on March 15, for direction.
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