Weekly Market Update

The BSE Sensex opened at 17,687 points on Monday and ended the week at 16737, registering a loss of 950 points. During the week, it touched a high of 17,735 points and a low of 16,679 points.

The Nifty opened at 5,227 points and ended the week at 4982, losing 245 points. It touched an intra-week high of 5,254 and a low of 4969 points.

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On Monday, due to the dearth of positive news flows from global and domestic fronts, the markets failed to cling on to the gains, and the indices were swinging between the positive and negative territories. The Sensex finished the day at 17490, down 109.22 points, or 0.6 per cent.

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The sudden decline in rupee's value against the dollar on Tuesday had a positive effect on information technology stocks.

These stocks surged higher as the rupee declined to an eight-month low against the dollar. The Sensex closed at 17373 points on Tuesday.

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On Wednesday, the BSE Capital Goods index was hit badly, shedding more than 300 points from its previous close. Eleven stocks declined and only four stocks advanced in the Capital Goods index.

Among the major losers were heavyweights BHEL and L&T, which were also two of the worst performing scrips among the 30 Sensex stocks. BHEL shed 4.12 per cent and closed at Rs 1,783.75, while L&T dipped 2.44 per cent to close at Rs 2,986.50.

The other capital goods stocks that took a beating at the bourses today were ABB Ltd (1.62 per cent), BEML (2.52 per cent), Bharat Electronics (6.11 per cent), Suzlon Energy (1.22 per cent) and Punj Lloyd (2.06 per cent).

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Cairn India shares moved up to a new high on Wednesday, gaining 7.5 per cent, spurred by the rise in the international crude prices that touched a record high of $122 per barrel.

The company's share price closed at Rs 278.45, up by Rs 19.35 on the BSE, after touching intra-day high Rs 283.50.

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Share prices of ITC, Larsen & Toubro, and Axis Bank fell on Thursday, partly on news that the Specified Undertaking of UTI may start the process of selling off its stake in these companies.

This dealt a double blow for these scrips, as stocks in the industry sectors to which they belong also came under selling pressure in a declining market. ITC, L&T and Axis Bank fell by between 3 per cent and 5 per cent on Thursday.

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Inflation rose to 42-month high of 7.61 per cent for the week ended April 26 as against 7.57 per cent in the previous week on account of rising food prices and some manufactured products.

Besides, crude oil rose above $125 on Friday due to sharp demand for diesel amid concern over supplies.

Traders feel further rise in the inflation rate affected the market sentiment.

The Sensex lost 345 points and closed at 16,737.