Despite making some moderate recovery during the final hour of closing on Friday (Jan 09), the 30-share index BSE Sensex ended the week on a negative note.

Second line stocks saw heavy selling pressure. Metal and realty stocks were hammered badly on Friday.

For the week ended December 27, India’s benchmark wholesale price index (WPI), inflation declined to 5.91 percent as compared to 6.38 percent during the last week.

During the same period of the last year, the inflation was at 3.83%.

On Friday, Sensex opened the day negatively at 9,434.85 after losing 152.03 points. Afterward, the stock index bounced back into the positive terrain and touched an intraday high of 9,630.

But, the index failed to maintain positive growth and again fell back into the negative zone on the back of huge selling action witnessed in metal, real estate and capital goods stocks.

Among the sectoral indices, capital goods, banking, power and PSU stocks found support hard to come by. Select pharma, IT, auto and FMCG stocks gained due to firm buying enquiries. It was a weak outing for a number of stocks from midcap and smallcap sectors.

BSE Midcap index lost 2.41% and Smallcap index fell 2.92%.

Finally, the Sensex closed the day at 9,406.47 after losing 180.41 points. It also touched an intraday high of 9,630.40 and an intraday low of 9,250.82.

On the other hand, the broad-based NSE Nifty lost 47.40 points at 2,873.00 after hitting an intraday high of 2,929.85 and an intraday low of 2,810.25. 

The overall market breadth was negative as it witnessed more selling as compared to buying. Out of 2,518 stocks traded at BSE, 577 posted gains, 1,879 declined while 62 remained unchanged.

The gainers in the 30-share index included TCS (6.34%), HUL (4.79%), NTPC (4.03%), Mahindra & Mahindra (3.51%), Maruti Suzuki India (3.42%) and Wipro (3.02%).

The major losers list included Satyam Computer Services (40.30%), RCom (9.61%), Sterlite Industries (India) (9.55%), Tata Steel (8.20%), Reliance Energy (7.70%), and DLF (7.25%).

While commenting on the daily market performance, stock market analyst, Vishwas Agarwal, said that the stock market is trading below all major levels.

“We earlier said this market can give money upto January 14. But Satyam’s incident disrupted the market journey in between. The way market has collapsed is very bad. I personally see that people are trapped in market at higher levels and in very near term there is no reason for them to build up confidence again,” Mr. Agarwal said.

He added, “Third quarter (Q3) results will start from next week and it is also worrying me, as they may not be impressive. Overall there will be cautious mood until world market improves and FII buying start in our market.”