Market slips for 2nd straight week

The market fell for the second consecutive week as data showing slowdown in GDP growth in Q3 December 2011 spooked investors. Macroeconomic worries arising from high oil prices also weighed on the domestic bourses.

The Sensex fell 286.77 points or 1.60% to 17,636.80 in the week ended 2 March 2012. The S&P CNX Nifty fell 69.95 points or 1.29% to 5,359.35.

The BSE Mid-Cap index rose 0.72%. The BSE Small-Cap index fell 0.43%. Both these indices outperformed the Sensex.




Foreign institutional investors (FIIs) bought shares worth a net Rs 25212.10 crore in February 2012, as per data from Securities & Exchange Board of India (Sebi). FIIs had bought shares worth a net Rs 10357.70 crore in January 2012.

Investors were concerned about high crude oil prices. India imports two-thirds of its oil consumption, so an increase in oil prices will hurt its fiscal balance substantially. Oil has advanced this year amid concern that sanctions against Iran's nuclear program will disrupt crude supplies from the second-biggest producer in the Organization of Petroleum-Exporting Countries. Iran has threatened to shut the Strait of Hormuz, a transit route for a fifth of the world's oil, in response to an embargo. US crude futures for April 2012 delivery were at $108.04 a barrel on 2 March 2012.

The Indian economy expanded 6.1% in the October-December quarter from a year earlier, the weakest pace in more than two years, hurt by slower growth in manufacturing output and a contraction in mining production, according to data released by the government on 29 February 2012. Growth in gross domestic product was slower than the 6.9% expansion posted in the July-September quarter. It was also below expectations for a 6.4% expansion, according to the median estimate of a poll of economists carried out by Capital Market. The government expects the economy to grow 6.9% in the current fiscal year that ends 31 March 2012, the weakest pace in three years.

India's merchandise exports in January 2012 rose by 10.10% to $25.35 billion while imports during the same month climbed by 20.25% to $40.10 billion, data released by the Government showed on Thursday, 1 March 2012. As a result, the trade deficit for January stood at $14.76 billion compared with $10.33 billion in the corresponding month a year earlier.

India's manufacturing sector expansion slowed slightly in February from a month ago, although the pace of growth remained healthy as new orders touched a 10-month high, a business survey showed on Thursday. The HSBC manufacturing Purchasing Managers' Index (PMI), compiled by Markit, eased to 56.6 in February from 57.5 in January, which was an eight-month high. The index has held above the 50 mark that separates growth from contraction for almost three years.

India's fiscal deficit during April to January was Rs 4.35 lakh crore or 105.4% of the full-year target, government data showed on Wednesday, 29 February 2012.