Sluggish start to 2014; Sensex slumps to 2-week low

Tags: Stock Market
After an eventful 2013, the new year started on a tepid note for the domestic stock market, which is expected to remain cautious over political developments leading up to the general elections.

The benchmark S&P BSE Sensex snapped its two-week gains, tumbling 342 points in the just concluded trading week on fresh selling in capital goods, power, PSU, auto, refinery, metal and banking sectors.

RBI Governor Raghuram Rajan, in his foreword to the 8th edition of the RBI's Financial Stability Report 2013, said any political instability will lead to a further erosion of investor confidence in the economy and that a stable new government would be desirable at the Centre.

However, the RBI said India is ready for the US Federal Reserve's tapering and pegged current account deficit at less than 3 per cent of GDP in the current financial year.

The Sensex resumed higher at 21,260.15 and hovered in a wide range of 21,331.32 to 20,731.33 before concluding at more than two-week low of 20,851.33, disclosing a loss of 342.25 points, or 1.61 per cent, over the last weekend.

The 30-share index had gained 478 points, or 2.31 per cent, in the previous two weeks.

The NSE 50-share Nifty also dropped by 102.65 points, or 1.63 per cent, to 6,211.15. It had gained by 145.40 points, or 2.36 per cent, in the previous two weeks.

The markets appeared unimpressed even after Prime Minister Manmohan Singh said his government would continue to push economic reforms, create a favourable environment for foreign direct investment and work harder to generate more employment opportunities in the manufacturing sector.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • It will take at least 4 more quarters for corporate bottomlines to turn around

    Aggregate numbers from corporate results in the June quarter of 2014-15 are hardly different from the previous six quarters, with no positive surprise

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Dealing with a sin called insensitivity

Rage and the notion of being above the law — ...

Kuruvilla Pandikattu SJ

India’s greatest gift to the world

What we hear most often about India these days is ...

Gautam Gupta

Why must innerwear be our best kept secret?

While women’s outerwear rules the marketing roost in India, unfortunately, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture