The markets ended the week lower by over 3% on negative global cues coupled with dismal March IIP data which raised economic growth concerns.
For the week ended May 11, the 50-share S&P CNX Nifty dropped 158 points or 3.1% to end at 4,928.90 and
the BSE Sensex declined 538 points or 3.2% in the week to settle at 16,292.98.
The index of industrial production contracted by 3.5% raising concerns over the slowing Economy. This indicates economic expansion has slowed down and it may not be possible for India to achieve GDP growth of 6.9 per cent during 2011-12 as calculated in the advance estimates. Finance Minister Pranab Mukherjee said slowdown in global demand and investment activity has impacted IIP.
"The IIP figures are disappointing, continued weak global business sentiments are also adversely impacting recovery in domestic private investment," Mukherjee told reporters here.
On the global front, the concerns regarding the eurozone debt crisis again took a centresatge, dampening the overall market sentiment. In France, the socialists came to the power with Fracois Hollande winning the presidential elections. In Greece, two main pro-bailout parties failed to win a majority in parliament, putting at risk the policies that have shielded them from bankruptcy and a euro exit. Greece could reject its hard-won bailout deal with international lenders that saved it from a disruptive bankruptcy.
Back home, Ranbaxy reported its quaterly earnings. The consolidated net profit surged over four-fold to Rs 1,246 crore during the first quarter ended March 31, 2012, over the same period of previous year. The company had posted a profit of Rs 304 crore during the quarter ended March 31, 2011, Ranbaxy Laboratories said in a filing to the BSE.
Dr Reddy's Laboratories reported a marginal increase in consolidated net profit at Rs 343 crore for the quarter ended March 2012. It was Rs 334 crore in the same period a year ago.
NTPC reported decline of 7% in its net profit which came in at Rs 2,953 crore. In the year-ago period it was Rs 2,781 crore.
All the sectoral indices closed in the negative. Realty, power, metal, IT and banking stocks were amongst the worst hit in this week's trade. The respective indices lost 3-5% each in this week's trade. Auto, FMCG, capital goods, oil & gas, consumer durables also ended weaker by 2-3% each.
Among the individual stocks, Tata Power, Sun Pharma, Hindalco, Coal India, maruti Suzuki, State Bank of India, Reliance Industries, Infosys, TCS, Wipro, larsen and Toubro were among the top losers. On the other hand, HDFC, ICICI bank, Hero MotoCorp and BHEL were among the gainers.