Both SENSEX and NIFTY witnessed seesaw movement during last week trade. It started the week on a positive note but the global equities tumbled during the second half of the week after US Federal Reserve gloomy outlook on the US economy. A sharp fall in rupee (which signaled huge outflow of money) resulted in a bloodbath on Indian equities on Thursday, as Global sell-off triggered the biggest percentage fall since August 2009.
The sell off extended even on Friday as the benchmark indices closed deeply in red on weekly basis.
The Sensex lost 771 points or - 4.60% for the week to settle at 16162.06 whereas the Nifty ended down by 216.50 points or - 4.30% to close at 4867.75 levels.
Most of the index stocks ended deep in red with heavyweights such as L&T, HDFC, HDFC Bank, Tata Motors, ONGC, Hindalco and Tata Steel were the major draggers during last week trade.
The advance tax collection from top 100 corporates during the July- September quarter was up by 9.9% as compared to corresponding period of the last financial year, well short of the 31% increase in direct tax projected by the government for the whole year.
Nymex crude declined 8.0% on a weekly basis to close at $80.93 /barrel (on Thursday) on account of weak US economic outlook by the US Fed.
The week witnessed a bloodbath in global markets (including commodities,) coupled with IMFs' lowering of growth forecast and Italy's debt rating downgrade.
President Obama proposed a budget deficit reduction proposal that includes $1.5 trillion in tax increases, by mostly targeting the wealthy Americans.
The IMF has lowered its global growth forecast to 4% for 2011 and 2012. The lender had previously forecasted 4.3% growth for 2011 and 4.5% expansion in 2012.
Italy's credit rating was cut to A from A+ by Standard & Poor's on concern that weakening economic growth and a "fragile" government may not be able to reduce the euro-region's second-largest debt burden.
Moody's Investors Service lowered debt ratings for Bank of America Corp, Citigroup Inc and Wells Fargo on Wednesday, citing reasons that the US government is getting less comfortable with bailing out large troubled lenders. It also downgraded eight Greek banks by two notches on Friday due to their exposure to Greek government bonds.
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