Markets end in red for second consecutive week

Stocks: Markets ended in red for the second consecutive week due to persistent selling pressure even as RBI cut policy rates by 25 bps and took a cautious stance on the economic recovery, while a forecast of a deficient monsoon added to the rout.
The sensex resumed lower at 27,770.79, but firmed up to 27,959.43 on initial buying by funds and other participants to enlarge their portfolios.
However, it fell immediately to 26,551.97 due to heavy selling pressure following cautious stance of RBI coupled with forecast of deficient monsoon before concluding at 26,768.49, and showing a loss of 1,059.95 points or 3.81 per cent.

It has lost 1,189.01 points or 4.26 per cent in two weeks.
The CNX 50-share Nifty also fell by 318.95 points or 3.78 per cent to end at 8,114.70. It has also dropped by 344.25 points or 4.07 per cent in two weeks.
The Reserve Bank cut interest rate by 0.25 per cent for the third time this year but hinted there may not be any more cuts in the near-term sending stock markets in a tizzy.

Meanwhile, monsoon is expected to be "deficient" as per the forecast of IMD , triggering fears of drought.
Rate sensitive sectors --realty, banking and auto -- suffered the most.

In the overseas market, Greece postponing repayment of an IMF loan added to the negative sentiment. Global market is cautious regarding Greek issue.