Markets down for fourth straight week, slump 4%

India's benchmark share indices, the Bombay Stock Exchange's Sensex and the National Stock Exchange's Nifty, ended down for the fourth straight week amid persistent selling by foreign institutional investors on fears of slowing domestic growth, weakening rupee, moderating factory output data from China and rising debt concerns in Europe.

For the week ended November 25, the Sensex crashed 676 points or 4.1% to end at 15,695, its lowest closing level in two years, since 3 November 2009. The S&P CNX Nifty lost 196 points or 4% to close at 4,710.

India is expected to see a real GDP growth of 6.9% in September quarter while the "downside risk" for the economy has increased amid prolonged turbulence in the global financial markets, said a Nomura report.

The real GDP expansion is projected to slow down to 6.9% in the September quarter on a year-on-year basis from 7.7% growth clocked in three months ended June.

According to Nomura, the lower growth would be on account of broad-based slowdown in private consumption, fixed investment and exports.

The rupee continued to remain weak and tumbled to its all-time low of Rs 52.73 to the dollar on Tuesday as investors moved to the safety of the US dollar and sustained demand for the greenback from oil marketing companies. The currency has depreciated over 14% against the dollar this year.

A preliminary purchasing managers' index survey by HSBC showed that China's factory output contract the most in 32 months to 48 in November against 51 in October rasing concerns that domestic growth in the world's second largest economy is slowing down.

Fitch Ratings downgraded Portugal's debt to "junk" and Moody's downgrade of Hungary's government bond rating to "junk" during the week, added to rising debt concerns in Europe.

Foreign institutional investors continued to press the sell button in Indian equities during the week under review. They sold equities worth over $1 billion dollars (Rs 5,323 crore) during the five trading sessions from November 21-25, NSE data showed.

Markets opened on a bearish note Monday to end the session lower for the eight straight day on rising debt concerns in the US and Europe and a weakening rupee. The Sensex and the Nifty both ended down 2.6% each.

A suprisingly short covering session in index heavyweights on Tuesday help the markets to snap a 8-day losing streak and end with marginal gains. The gains were led by index heavyweights Reliance Industries and IT major Infosys which have a combined weightage of over 20% in both the benchmark indices. 

The bearish trend continued to haunt the markets on Wednesday with the Sensex closing at a 2-year low of 15,700, the lowest closing since November 3, 2009, when the benchmark had ended at 15,405.

A pull back was witnessed Thursday with both the benchmark indices ending up 1% on hopes that the government will fast track reforms. Late Thursday, the Union Cabinet approved 51% foreign direct investment in the multi-brand retail sector. It also decided to raise the cap on foreign investment in single-brand retailing to 100% from 51%.

However, the gains were short lived on Friday as foreign institutional investors continued to remain sellers and down grade of Hungary's debt weighed on market sentiment. The Sensex and the Nifty both ended the session down 1% each.

Sectorally the losses during the week were led by metals, oil and gas, consumer durables and FMCG segments. The BSE Metal Index dropped 5.3%, Oil & Gas Index eased 4.8%, Consumer Durables fell 4.9% and FMCG fell 4.3%.
 
Organised retail shares were the top gainers in an otherwise bearish week after the government approved foreign direct investment in multi-brand and single-brand retail. Pantaloon Retail surged 18%, Shoppers Stop jumped 11.2% and Trent gained 2.5% during the week.

Amtek Auto was the stock of the week surging 27% to Rs 121.30 after the company announced a buy-back programme of up to 10% of the paid-up capital and free reserves at a maximum price of Rs 200 per equity share.