Market posts fourth straight weekly loss

The market posted fourth straight weekly loss, tracking weak global markets. A whole host of factors right from yen carry trade unwinding, hedge fund redemption pressure, heavy FII selling and sub-prime concerns haunted local bourses throughout the week. The market declined in 3 out of 4 trading sessions. Markets across the globe were inflicted with intense volatility

The benchmark index BSE Sensex declined 726.73 points to 14,141.52 in the week ended Friday, 17 August 2007. The S&P CNX Nifty was down 225.30 points to 4,108.05 in the week.

The week began on an upbeat note with the BSE Sensex advancing 148.96 points to 15,017.21, on Monday, 13 August 2007, tracking firm Asian markets. All the sectoral indices on BSE posted gains, except BSE IT index.

Sensex posted marginal loss of 16.30 points to 15,000.91, on mixed global cues, on Tuesday, 14 August 2007. Turnover was low on that day. Stock markets remained closed on 15 August 2007 on account of Independence day.

On Thursday, 16 August 2007, the Sensex slumped 642.70 points at 14,358.21, its second biggest point fall in a day, on intense selling pressure throughout the day. Markets across the globe were gripped with selling pressure.

Selling continued a day later with Sensex declining 216.69 points at 14,141.52. The Sensex oscillated in a wide rage of 538.68 points. Volatility was intense.

Capital goods stocks declined on profit booking. Larsen & Toubro (L&T) and Bharat Heavy Electricals (Bhel) declined 5.22% and 8.01% respectively. India’s largest private sector engineering company Larsen & Toubro (L&T) won orders worth Rs 203 crore for Delhi's metro rail project to be executed in 30 months.

Bharat Heavy Electricals (Bhel), the country’s biggest power equipment maker, bagged orders worth over Rs 2900 crore for the supply and installation of the main plant package at the upcoming Jhajjar Super Thermal Power Project in Haryana involving three units of 500 MW each.

IT stocks declined. India's largest software service exporter TCS slipped 7.77% in the week. As per reports, it is interested in buying UK-based financial services firm Prudential’s captive back office, having centres in the UK, Ireland, Scotland and India.

Infosys (down 4.99%), Satyam Computers (down 8.18%), and Wipro (down 0.99%), also declined.

Metal stocks were hit hard as global metal prices came under pressure. Hindalco Industries, the country’s largest aluminium company, lost 7.38%. As per reports, it plans to become supplier to the car market.

Tata Steel tanked 14.40% while Sterlite Industries plunged 12.85%.

NTPC, India's biggest power generator, was down 1.10%. NTPC will replace Dabur India in S&P CNX Nifty from 24 September 2007.

State-run Oil and Natural Gas Corporation (ONGC) lost 7.13%. It has reportedly demanded a 12.5% hike in price of natural gas it produces from fields given to it on nomination basis as it was incurring losses at the present price of Rs 3.2 per cubic meter.

State Bank of India (SBI), the country’s largest bank, eased 5.46%. It plans to mop up nearly Rs 180000 crore over the next five years, including a Rs 14500-crore public offer this fiscal.

India’s largest private sector company and oil refiner Reliance Industries (RIL) declined 3.20%. As per reports, RIL has received clearance from West Bengal's Food Processing and Horticulture department for its agri-retail business in the state.

Ranbaxy Laboratories lost 4.13% on reports that Europe’s third-biggest drugmaker Novartis has sued the company to block sale of a blood-pressure medicine Diovan, in the United States.

On 14 August 2007, Omnitech InfoSolutions settled at Rs 164.55 on BSE, a premium of 56.71% over the IPO price of Rs 105. It debuted at Rs 183.75 on BSE, and hit a low and high of Rs 155 and 183.75, respectively.

IVR Prime Urban Developers settled at Rs 418.15 on BSE, a discount of 23.97% over the IPO price of Rs 550, on 16 August 2007. The IVR scrip debuted at Rs 500. It touched a high of Rs 500 and a low of Rs 388.

Zylog Systems settled at Rs 431.10 on BSE, a premium of 23.14% over the IPO price of Rs 350, on Friday, 17 August 2007. The scrip debuted at Rs 525, also its high. It also touched a low of Rs 356.20.

India's wholesale price index rose 4.05% in the 12 months to 4 August 2007, lower than the previous week's 4.45% due to a fall in food and manufactured product prices, government data showed on Friday, 17 August 2007.