European debt crisis plagues Indian bourses, benchmarks slip sharply

Mumbai : The European debt crisis continued to depress investor sentiments across global markets this week. Indian bourses registered huge losses with a benchmark index falling close to 5 percent to hit a three-and-half month low.

During the week, the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) slipped 4.78 percent or 821.31 points and closed Friday at 16,371.51 points.

At the National Stock Exchange, the 50-scrip S&P CNX Nifty also fell 5.08 percent or fell 263.05 points to close the week at 4,905.8 points.

Broader markets also ended in the red. The BSE 500 index closed 5.65 percent lower. The BSE midcap index fell 7.24 percent, while the BSE smallcap index slipped 8.61 percent.

The recent earnings season has also dampened sentiments as companies battling higher interest costs, a depreciating rupee and soaring fuel prices saw bottomlines getting eroded.

The week under review, infact, saw the rupee falling to a 32-month low to 51.33 a dollar Friday. In the midst of all this, encouraging news such as food inflation showing signs of easing were pushed aside.

Prominent weekly Sensex gainers included Cipla, up 10 percent at Rs.313.75; Hero MotoCorp, up 2.5 percent at Rs.2,184.15; Sun Pharma, up 2.4 percent at Rs.497.65 and Bhart Airtel, up 1.7 percent at Rs.397.65.

Among losers on the benchmark Sensex were: Jaiprakash Associates, down 19.7 percent at Rs.62.20; BHEL, down 15.8 percent at Rs.275.95; Maruti Suzuki, down 12.5 percent at Rs.940.70 and ICICI Bank, down 9.7 percent at Rs.770.15.

Global markets continued to be plagued by the European debt crisis and increasing doubt over effectiveness of measures to bailout debt ridden economies of the Euro zone.

On a weekly basis, the Japanese Nikkei closed 1.64 percent lower at 8,374.91 points, while Hong Kong’s Hang Seng ended 3.38 percent down at 18,491.23 points.

The Chinese Shanghai composite index shed 2.6 percent and closed the week at 2,416.56 points.

European markets also lost heavily. Britain’s FTSE 100 closed 3.29 percent down at 5,362.94 points, while the French CAC 40 closed 4.84 percent lower at 2,997.01 points.

The German DAX shed 4.24 percent at 5,800.24 points during the week.

Wall Street too ended in the red. The S&P fell 3.81 percent and closed the week at 1,215.65 points, while the Dow slipped 2.94 percent and ended Friday at 11,796.16 points.

The technology-heavy Nasdaq also ended 3.97 lower at 2,572.5 points.

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