Sensex extends losses for 2nd week in a row, drops 123 pts

Tags: Stock Market
Both S&P BSE benchmark Sensex and CNX Nifty continued to decline for the second consecutive week due to persistent selling pressure following rise in crude oil prices in view of unrest in Iraq.

Shares of Power, Refinery, Auto, Capital Goods and PSU declined due to heavy selling pressure from investors.

However, shares of IT and Tech firmed up on good demand from investors due to weakness of rupee against the dollar.

Tepid monsoon forecast and slowdown in buying by foreign funds, who have been major buyers on the domestic bourses, have dampened sentiments, brokers said.

Rising tension in Iraq which drove oil prices to 9-month high and increase in wholesale inflation weighed on stocks.

Costlier crude is a double whammy for the Indian economy, which imports 80 per cent of oil supplies, as trade gap widens and threatens to push inflation higher. This will reduce room for RBI to lower lending rates in a bid to boost growth.

The Sensex resumed slightly higher at 25,239.50 and firmed up further to a high of 25,609.28 on initial strong buying. But declined afterwards to 25,056.18 before settling the week at 25,105.51, disclosing a loss of 122.66 points or 0.49 per cent.

It has lost 290.95 points or 1.15 per cent in two weeks.

The NSE 50-share Nifty also dropped by 30.65 points, or 0.41 per cent, to 7,511.45.

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