Sensex sheds 507 points this week

Mumbai, Jun 9 (UNI) The Bombay Stock Exchange (BSE) Sensex lost 507 points or 3.61 per cent to 14,063.81 in the week ended yesterday, while the broader National Stock Exchange (NSE) S&P CNX Nifty shed 152 points or 3.66 per cent to 4,145.

''The market was weak, last week, as Sensex declined in four out of the five trading sessions, tracking weak global markets, concerns regarding large initial public offerings (IPO's) in pipeline sucking out liquidity, fears of another rate hike and lack of fresh buying weighed on the indices. Volatility was to fore in the entire week,'' market analysts observed.

The week started on a bearish note with the Sensex declining 74.98 points, to 14,495.77 on Monday, following a sharp fall in Chinese markets weighed on domestic bourses with shares from auto and information technology (IT) pivotals attracting heavy selling.

Sensex gained 39.24 points to 14,535.01, a day later, following a strong recovery in markets across the globe, led by rebound in China. Buying was seen in IT, banking stocks and in select pivotals.

On Wednesday, the Sensetive Index plunged 279.08 points at 14,255.93, as fresh selling emerged at fag end of the day. All the sectoral indices on BSE settled with losses, with shares from public sector unit (PSU), banking and oil&gas space bearing most of the brunt.

Sensex lost 69.75 points to 14,186.18, on Thursday, tracking weak global markets. However buying support was seen in IT pivotals.

The correction continued for the third straight day, with the 30-share BSE Sensex losing 122.37 points to 14,063.81 on Friday, on negative cues from weak global markets triggering a fall on domestic bourses.

Reliance Industries (RIL) lost ground in the week. The government on Tuesday, approved RIL's Haryana special economic zone, proposed to be spread over 10,000 hectares.

Shares from the auto pack suffered sharp losses, on weak sales in May this year, which sparked concerns of slowdown in demand. Tata Motors' sales declined 4 per cent to 42,558 for the month of May.

Pune headquartered Bajaj Auto's bike sales, including exports dipped 15 per cent at 1,67,008 units in May this year from 1,96,120 units in the same month last year. Hero Honda Motors posted 6 per cent fall in May 2007 sales to 2,85,109 units from 3,03,444 units in May 2006.

However, shares from the IT sector surged on renewed buying as rupee weakened to its lowest in nearly four weeks on Friday. Satyam Computers, TCS, Infosys Technologies and Wipro, all settled with gains.

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