Sensex down by 307.42 pts during the week
Mumbai, Jul 14 : Snapping the five-week rally, the benchmark Index of the Bombay Stock Exchange (BSE) nosedived by 307.42 points to 17,213.70 in the week under review, following profit booking by local operators and weak global cues.
The Nifty of National Stock Exchange (NSE) fell by 89.70 points to settle at 5227.25.
Investors sentiment was also hurt by IT major Infosys revising downwards both earnings and revenue growth guidance for the year ending March 2013 in dollar terms after reporting disappointing Q1 June 2012.
The BSE Mid-Cap and Small-Cap index eased by 1.05 and 1.25 per cent respectively. Both these indices outperformed the Sensex.
The Sensex declined in four out of five trading sessions during the week.
FIIs bought shares worth a net Rs 3044.40 crore from the secondary equity markets during seven trading sessions from 3 July 2012 to 11 July 2012, as per data released by Securities and Exchange Board of India (SEBI).
Index of Industrial Production (IIP) rose by 2.4 percent in May from a year earlier, driven by manufacturing growth, as per data released on Thursday.
On the macro economic front, the country's industrial output picked up more than expected in May, bolstering the case for the Reserve Bank of India (RBI) to keep interest rates high at its next policy meeting as a slow start to the monsoon puts pressure on inflation, especially food prices.
The earnings season also started during the week with HDFC, Infosys, TCS and HDFC Bank annoucing their first quarter numbers.
The losses during the week were led by software, consumer durables and metal shares. The BSE IT Index was down by 5.2 pc, Consumer Durables slipped by 3.4 per cent and Metal index too fell by 3.2 per cent.
Infosys slumped 8.8 per cent to end at Rs 2,228 after the software major shocked investors by slashing its dollar revenue guidance for the current fiscal to 5 per cent from 8-10 per cent.
The IT-major reported a marginal decline of 1.2 per cent in its consolidated net profit at Rs 2,289 crore for the quarter ended June 2012.
However, its peer TCS reported a better-than-expected 14.5 per cent quarter-on-quarter (qoq) growth in consolidated net profit at Rs 3,318 crore for the quarter ended June 30, 2012.
The country's largest mortgage lender HDFC reported 18.6pc rise in net profit at Rs 1,002 crore during the April-June quarter, over the year ago period, because of healthy growth in advances.
Shares of telecom service providers witnessed profit taking after gains in the previous week with the Cabinet considering a fresh proposal on prospective spectrum pricing and the telecom tribunal reportedly giving a split verdict in the 3G intra-circle roaming case. Bharti Airtel ended down 4.3 per cent at Rs 308.
Trading for the week began on a weak note. Key benchmark indices fell by 129.14 points at 17,391.98 on Monday with sentiment hit adversely by global growth worries and euro-zone debt woes.
The Nifty shed 41.80 points at 5,275.15.