Markets fall for 2nd week; RBI rate stand disappoints

Both key benchmark indices - S&P BSE Sensex and CNX Nifty - ended in the red for a second consecutive week due to persistent selling pressure mainly in power, banking, auto, realty and PSU counters in view of fresh foreign capital outflows.
Interest rate sensitive realty and banking stocks bore the brunt of selling after the Reserve Bank of India left repo rate unchanged at 7.75 per cent, but cut SLR by 0.50 per cent to 21.50 per cent. Markets were expecting the central bank to continue the rate cut cycle after it surprisingly slashed key lending rate (repo) by 0.25 per cent in mid-January.

Poor earnings from some bluechip companies coupled with uncertainty on outcome of the Delhi Assembly polls also affected the market sentiment.
Global market ended mixed after the European Central Bank abruptly pulled back its soft treatment of Greek debt and cancelled its acceptance of the country's bonds in return for funding.
The Sensex lost 465.04 points, or 1.59 per cent, to settle below 29,000 level at 28,717.91. The 30-share index has lost 560.93 points, or 1.92 per cent, in the last two weeks.
The 50-unit CNX Nifty slipped 147.85 points, or 1.68 per cent to end at 8,661.05. The NSE benchmark index has dipped 174.55 points, or 1.98 per cent, in the last two weeks.

The S&P BSE Mid-Cap index fell 247.91 points, or 2.31 per cent, to conclude at 10,490.68, while S&P BSE Small-Cap index plunged 251.92 points, or 2.22 per cent, to settle at 11,077.34.
Among the Sensex shares, 21 declined and the rest logged gains.