Sensex nosedives by 578 pts during the week

Mumbai, Nov 15 (UNI) The barometer Sensitive index of Bombay Stock Exchange (BSE) plunged by 578.87 points, or 5.81 per cent, during the week and ended at 9,385.42 in the week ended yesterday.

Similarly, the S&P CNX Nifty index of National Stock Exchange (NSE) also dipped by 162.65 points, or 5.47 pc, to 2,810.35 in the week.

Investor sentiment remained jittery on political uncertainty ahead of state elections, uncertainty about a US Treasury plan to forgo buying bad mortgage-related investments to buy stakes in US lenders and caution ahead of a meeting of G-20 political leaders. Fall in India's exports for the first time in five years also weighed on the investor sentiment.

''Political uncertainty ahead of state elections, uncertainty about a US Treasury plan to forgo buying bad mortgage-related investments to buy stakes in US lenders and caution ahead of a meeting of G-20 political leaders, pulled the market lower in what was a choppy trading session on November 14,'' brokers said.

The market failed to sustain the rally witnessed at the start of the week caused by China's massive economic stimulus plan. Higher- than-expected industrial production growth in September and expectation of further cut in interest rates triggered by fall of inflation to single digit, failed to avert the slide. The BSE Sensex fell in three out of the four trading sessions in the week.

The BSE Mid-Cap slipped 139.30 points, or 4.15 pc, to 3,216.08 and the BSE Small-Cap index lost 135.05 points, or 3.46 pc, to 3,766.05. Both the indices outperformed the Sensex.

Foreign institutional investors (FIIs) have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. FII outflow reached Rs 51,047.40 crore in the year 2008 so far, till November 12.

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