Banking, metal stocks lead decline

The market edged lower last week led by sell-off in banking shares after rating agency Moody's downgraded State Bank of India on Tuesday, 4 October 2011. Metal shares tumbled on global recession fears. Data showing a decline in service sector activity in September 2011, resumption of selling by foreign funds at the beginning of this month, and likely muted-to-weak Q2 earnings weighed on investors' sentiment. The market fell in three out of four trading sessions during the week. The stock market was closed on Thursday, 6 October 2011 on account of Dassera.




The BSE Sensex fell 221.22 points or 1.34% to settle at 16,232.54 in the week ended Friday, 7 October 2011. The 50 share S&P CNX Nifty fell 55.20 points or 1.12% to 4,888.05.

The BSE Mid-Cap index shed 2.78% and the BSE Small-Cap index dropped 2.32%. Both these indices underperformed the Sensex.

India's services sector contracted for the first time in more than two years as new business dried up and expectations weakened amid concern over a flagging world economy, a survey showed on Wednesday, 5 October 2011. The seasonally adjusted HSBC Markit Business Activity Index, based on a survey of around 400 firms, plunged in September to 49.8 -- its lowest reading since April 2009 -- and below the 50 mark which separates growth from contraction.

Foreign institutional investors (FIIs) outflow in October 2011 totaled Rs 2058.80 crore (till 4 October 2011). FIIs had sold shares worth a net Rs 158.30 crore in September 2011. FII outflow in calendar 2011 totaled Rs 2350.40 crore (till 4 October 2011).

Key benchmark indices made a weak start to the new week, month and quarter on Monday, 3 October 2011, as world stocks fell on Greece default fears. The BSE Sensex lost 302.21 points or 1.84% to settle at 16,151.45.

Key benchmark indices fell for the third straight day on Tuesday, 4 October 2011, on weak global cues. The BSE Sensex dropped 286.59 points or 1.77% to settle at 15,864.86.

Key benchmark index fell for the fourth straight day on Wednesday, 5 October 2011, amidst high volatility as data showed a decline in service sector activity in September 2011, weighed on sentiment. The BSE Sensex lost 72.45 points or 0.46% to settle at 15,792.41, its lowest closing level since 5 February 2010.