Friday, 21 December 2012

Sensex falls for second week; ends over 200 points down

Sensex falls for second week; ends over 200 points down
Clean Media Correspondent

MUMBAI, Dec 21 (CMC) Sensex ended lower on Friday, marking a second week of declines, as lenders were hit by profit-taking, while Bharti AirtelBSE -3.08 % fell after CBI filed charges as part of a probe into alleged corruption in allocation of mobile airwaves. 

The market also tracked weak global shares after a Republican proposal to deal with a US fiscal crunch failed to get enough support, deepening uncertainty over the US can avert the "fiscal cliff" of automatic spending cuts and tax increases set to start Jan. 1. 

Markets are expected to remain volatile next week amid uncertainty around the US "fiscal cliff" and as markets head into the last derivatives expiry of 2012 on Thursday. 

"Markets are hoping for a solution to the US fiscal cliff issue because if a solution is not reached, it can impact sentiment negatively," said Dipen Shah, Head of Private Client Group Research, Kotak Securities. 

"We expect the issue to be resolved and the same can provide relief in short term," he added. 

The benchmark BSE index fell 1.09 per cent, or 211.92 points, to end at 19,242, marking its biggest single-day per centage fall since Oct. 30, and ending 0.39 per cent lower for the week. 

The broader NSE index shed 1.16 per cent, or 68.70 points, to end at 5,847.70, closing below the psychologically key 5,900 level, also ending down 0.54 per cent for the week. 

Bharti Airtel shares ended 3 per cent lower after CBI filed charges against the company and Vodafone Group Plc's India unit on Friday as part of a probe into alleged corruption in the allocation of mobile phone airwaves a decade ago. 

Banking shares such as State Bank of IndiaBSE -1.95 % fell 2 per cent on profit-taking, after gaining 9.7 per cent in Decmeber, as of Thursday's close. 

Mahindra & Mahindra shares ended 1.6 per cent lower on earnings concerns, after the automaker said it would buy Navistar International's 49 per cent stake in its two joint ventures, in a $33 million deal. 

Mahindra automotive president Pawan Goenka told analysts on Thursday that M&M's board has given executives three years to bring the two companies to profitability. 

Blue Star shares fell 2.5 per cent, while VoltasBSE -3.87 % shares lost 3.9 per cent after Nomura said it has come away "with extremely negative takeaways" for the Indian heating, ventilation and air conditioning (HVAC) market after meeting a Blue Star executive in charge of the segment. 

However, among gainers, Mahindra and Mahindra Financial Services LtdBSE 0.87 % ended 1.3 per cent higher after the board approved a stock-split in the ratio of five new shares for ever one held. 

Shares is Adani Enterprises LtdBSE 0.81 % ended 0.7 per cent higher after earlier gaining as much as 5 per cent in early trade after its promoters set the floor price for a share sale at 282 rupees per share.

1 comment:

  1. It is obvious as the people are fade up of the lingering on in the share market!