India’s benchmark index, Sensex extended its weekly losses because of heavy selling action by foreign investors and hopeless global markets.

The 30-share index fell on worry that the rising inflation may force RBI to tighten monetary plan, whereas the increasing oil costs weighing down auto makers.

Jaiprakash Associates, Tata Motors, and ICICI Bank chaired the losers’ list. 

During the week ended May 30, the 30-share index lost 234.07 points to 16,415.57, while the broad based NSE Nifty rejected 76.45 points to 4,870.10 in the same period.

But, Sensex has indicated some recovery signals on Friday after making a gain of 99.31 points to mark its closure at 16,415.57, while the broad-based Nifty made a gain of 34.80 points to end at 4,870.10.

Metal, consumer durable, and IT shares led the broad-based rally in the stock market.

BSE mid-caps and small-caps rejected 2.54% and 4.51% respectively during the week.

The whole price index, inflation went up to 8.1% for the week ended May 17, as against 7.82% during the last week, fuelled by high prices of all essential commodities.

Tata Motors lost 9.56% over the week after the India;s largest automobile company declared that it will lift up Rs 72 billion through Rights issues to fund Jaguar acquisition.

Leading utility vehicles manufacturer, Mahindra & Mahindra (M&M) slipped 9.11% in the week after the company registered lower than forecasted fourth quarter earnings that missed analysts’ estimation.   

However, Larsen & Toubro zoomed 4.80% after the engineering and construction giant pleased investors by declaring bonus issue of shares, dividend and outstanding financial performance that beats analysts forecast.

Indian Oil Corporation, the nation`s biggest oil marketing company, posted net loss of Rs 4.14 billion due to soaring crude oil prices and its inability to pass on the same to the end users.

The government is expected to declare the fuel price hike in next couple of days to save oil marketing companies.