The BSE benchmark Sensex posted its longest four-week losing streak since October 2008 as it plunged by 698 points to end at the 15-month low of 16,141.67 during the truncated week in line with mayhem in global markets on economic worries.
The stock markets, BSE and NSE, were closed on Monday, August 15, on account of the 'Independence Day'. Increased selling by foreign institutional investors (FIIs) also was one of the major reasons for the turmoil. FIIs pulled out over Rs 2,000 crore this week, taking the total to over Rs 7,600 crore in August so far.
Enduring European debt problems and murky US economic data released on Thursday indicated the world is going into another recession, distressing the market sentiment globally.
On the domestic front, higher inflation and rising interest rates, which might restrict the corporate profit growth, continued to weigh on the market.
The downslide commenced from July 26 when RBI raised key lending rates by 50 basis points, higher than the market expectations. The situation was further exacerbated by external factors.
Sensex-based key stocks like RIL, Infosys, ICICI Bank, SBI, Tata Motors, Tata Steel, Jindal Steel, Sterlite, Wipro, Hindalco, Tata Power logged their new 52-week lows.
The Bombay Stock Exchange 30-share bellwether index resumed higher at 17,015.99 but later dipped below 16,000 to a low of 15,987.77, before ending at 16,141.67, lowest closing after May 25, 2010, a net loss of 697.96 points, or 4.14 per cent, from its last weekend's close.
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