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All Hell Broke Lose

The Sensex continues to oscillates as investors tread with caution

Widening credit losses and high crude oil prices continue to hold hostage stock market in India as well as worldwide. Both the Sensex and the Nifty fell 4.5 per cent and 4.09 per cent, respectively for the week ended May 23.


On the last trading of the session, the Sensex closed the day at 16,649.64, down 1.52 per cent after hitting an intraday low of 16,626.11. The Nifty touched an intraday low of 4940.70 before finishing at 4946.55, down 78.9 points. Inflation for the week ended May 10 was a tad lower at 7.82 per cent, as against 7.83 per cent in the previous week.


Major Nifty losers were Punjab National Bank, down 10 per cent, SAIL 7 per cent, Reliance Communications and L&T down 5 per cent each. BSE Bankex was the worst performer down 7.8 per cent, led by Axis Bank 11 per cent, SBI 7.5 per cent and ICICI Bank 8 per cent.


CNX Midcap Index was also down 3 per cent and BSE small cap down 1.2 per cent. JP Associates was down 12 per cent, Bank of India and Indiabulls Financial services down 10% each. GMR Infrastructure was down 9%, IDFC, Power Finance and NTPC were down 7 per cent each.


Among the sectoral indices, BSE Realty Index down 6.5 per cent - Indiabulls Real Estate down 9 per cent, HDIL down 7 per cent, DLF down 6 per cent. BSE FMCG Index was down 5 per cent and BSE Capital Goods Index down 4 per cent.


FIIs were net sellers in equities to the tune of $353 million, while mutual funds sold equities to the tune of $624 million for the week ended on May 24, 2008.


For PSU banks, all hell broke lose when on Friday the government decided to increase the farm debt loan waiver and one time settlement scheme size to Rs 71,860 crore from earlier announced Rs 60,416 crore.


Moving Eastwards, MSCI Asia Pacific Index lost 2.1 percent this week. Financial stocks declined 4.4 percent, the most among the index's 10 industry groups, while energy companies rose 0.7 percent, the only group that gained.