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Markets post biggest weekly fall in 7 weeks

Markets post biggest weekly fall in 7 weeks
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First Published: Fri, Nov 11 2011. 11 07 AM IST

Updated: Sat, Nov 12 2011. 12 30 AM IST
New Delhi: Shares posted their biggest weekly fall in seven weeks on Friday, as slower-than-expected domestic industrial output growth and a bleak outlook for financials further dented investor confidence already hurt by the euro zone’s troubles.
Sluggish quarterly profit at Tata Steel, the world’s No. 7 steelmaker, and DLF, India’s largest listed real estate developer, also added to the fall in the benchmark index, which ended at its lowest close in three weeks.
Tata Steel fell 4%, while DLF shed 2.5%.
“We are still looking to overseas markets and not reacting to news within the country...Once we start looking at factors within India, we will lose even more ground,” said Arun Kejriwal, strategist at research firm KRIS.
“If Europe falls today, it will have a heavy impact on Monday.”
The main 30-share BSE index closed down 0.97 points at 17,192.82 points, with almost two thirds of its components in the red. The index, which fell as much as 1.5% earlier, lost 2.1% this week -- its biggest fall since the week ended Sept 23.
Industrial output grew at its slowest pace in two years in September, providing further evidence of deceleration in the economy and raising the odds of a pause in the central bank’s 20-month-long policy tightening cycle.
ICICI Bank, India’s top private sector lender dropped 4.8%, and dragged the main index the most.
Bigger rival State Bank of India fell 3.4%, while HDFC Bank lost 2.8%.
Worries about rising bad loans in Asia’s third-largest economy prompted Moody’s Investors Service earlier this week to cut its outlook on the Indian banking sector to “negative” from “stable,” saying monetary tightening and a slowdown in the economy would cut bank loan growth.
Shares in Kingfisher Airlines shares slumped 18% to a life low as the airline continued to cancel flights and newspapers reported leasing companies were planning to take planes back and pilots were leaving.
The stock closed down 9.5% at Rs 19.65.
Shares of Hindalco fell 4.3% after it warned second half of this fiscal year would be tough due to global economic uncertainty and cost pressures.
The broader 50-share NSE index closed 1% down at 5,168.85 points. There were just 0.37 gainers for every decliner in the broader market, where almost 606 million shares changed hands.
European shares rose on Friday as investors bought beaten-down riskier assets, with markets focused on whether debt-laden Italy could implement tough austerity measures crucial to avoid a euro zone meltdown.
At 3:45pm, the FTSEurofirst 300 index of top European shares was up 0.43%.
World stocks, as measured by the MSCI world equity index , rose 0.43%.
STOCKS
Educomp Solutions Ltd fell 10% after the company posted a 78% drop in July-September profit.
Spicejet rose 3.6% ahead of its quarterly results, and as investors in aviation stocks shifted from debt-laden Kingfisher Airways to the almost debt-free company.
Air-conditioning and cooling products maker Voltas fell 7% after its July-September net profit slumped 54.7%.
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First Published: Fri, Nov 11 2011. 11 07 AM IST
More Topics: Markets Update | India | Stocks | BSE | NSE |