Sensex's nine-day bull run ends, suffers 75 pts weekly loss
Mumbai, May 13: With the stock markets entering into a correction mode on Thursday after a nine-day rally, the Bombay Stock Exchange (BSE) Sensitive Index (Sensex) closed 74.59 points lower at 12,285.11 points as compared to the previous week's close of 12,359.70.
On Wednesday, the Sensex closed at 12,612.38, its highest everclose in history.
The National Stock Exchange (NSE) S&P CNX Nifty index also closed 13.90 points down at 3,650.05 points as compared to the last close of 3,693.15.
The week saw the Sensex breaching another landmark of 12,500 points on Monday and touched an all time high of 12,671.11 points in the intra-day trade on Thursday and dippped to a low of 12,224.44 on Friday.
The correction on Thursday and Friday led to a total loss in the Sensex by 327 points.
The profit booking at the higest ever level was a normal event, according to the brokers.
The US interest rates hike on Wednesday night, Left's electoral victory in West Bengal and Kerala, government guidelines on controlling cement price, weaker global markets and higher crude oil prices were key factors encouraging profit booking by the investors.
Also the foreign institutional investors (FIIs) net selling by Rs 1,199 crore on Thursday had a negative impact. FIIs were net buyers by a total of Rs 1,149.90 crore on the earlier three days of the week.
On Monday, led by index heavyweights Raliance and ONGC, the BSE Sensex surpassed yet another important milestone of 12,500 mark, before settling at a new high of 12,462.47 points, adding about 103 points over the previous close.
On Tuesday, the Sensex maintained its upward momentum and closed for the first time above the 12,500 mark at 12,513.86, with a gain of 51.39 points.
On Wednesday, Sensex continued its upward march for the ninth consecutive day, as it climbed up by 98.52 points and crossed the 12,600 mark, to close at a record high of 12,612.38 points.
On Thursday, benchmark index of the Bombay Stock Exchange (BSE) dipped sharply by 176.97 points to 12,435.41 points mainly on profit booking in blue chips like Reliance and ONGC.
On Friday, the weaker world markets triggered profit booking on domestic bourses too as the BSE benchmark index closed at 12,285 points (down by 1.21 per cent), a loss of 150 points as compared to the last close of 12,435.
Reliance Petroleum Ltd (RPL) made a grand debut on Thursday (May 11), listing with a premium of 70 per cent at Rs 101.95 on the BSE as against the fixed issue price of Rs 60 for a Rs 10 share. However, the RPL scrip closed much lower at Rs 85.45 with a premium of over 42 per cent due to profit booking by investors.
Reliance Industries Ltd Chairman Mukesh Ambani, who is also chairman of RPL, struck the gong in the central hall of BSE to mark the birth of RPL in the capital market.
RPL had huge volumes on the first day with around 39 crore shares being traded on the BSE and NSE.
On Friday, RPL slipped further by Rs 1.50 to Rs 83.95 and volumes were much lower too.
For Reliance Industries as well, this was an eventful week as the scrip touched a high of Rs 1,195 on Wednesday (May 10), but closed lower at Rs 1,066.95 on Friday on profit booking.
Another oil and gas giant ONGC too was in the news as its share prices crossed Rs 1,500 mark in the inra-day trade for the first time and its market capitalisation too crossed Rs two lakh crore mark on Wednesday. Earlier in the year 2000 software giant Wipro's market cap had crossed Rs two lakh crore.
ONGC closed at Rs 1,484.45 on Wednesday, its highest ever but slippped on profit booking to Rs 1,417.25 on Friday.
Cement stock prices too dippped sharply on Friday as government threatened to stop export of cement to restrict rising prices.
Gujarat Ambuja Cement was down by 7.5 per cent to Rs 106, ACC was down by more than seven per cent to Rs 897.20, while Grasim Industries was down by 2.32 per cent to Rs 2,250.80.