BSE Sensex posts worst week in three years

By Dipika Lalwani

MUMBAI (Reuters) - The BSE Sensex fell for a fifth session in six on Friday to post its worst weekly loss in three years as oil explorers continued to slump after Brent crude prices slipped to below $63 a barrel.

The relentless slide in crude prices is fuelling concerns about global economic growth, and also dragged stocks in Europe lower, while limiting gains in Asian markets.

Caution also prevailed ahead of consumer inflation data due after the close of markets. Retail prices were expected to have risen 4.5 percent from a year earlier, the slowest monthly advance since the series was released in 2012.

Foreign investors have now sold $141.5 million worth of shares in Indian markets in the last three sessions, regulatory data showed.

The Nifty has fallen 4.68 percent so far this month, putting it on track to snap two months of gains.

"In short-term, I expect markets to correct further by 2-3 percent as foreign institutional investors are likely to continue to sell as markets looks little overvalued at these levels," said G. Chokkalingam, founder of Equinomics, a research and fund advisory firm.

"The flows will also be impacted as the holiday season begins.

The benchmark BSE Sensex ended 0.9 percent lower at 27,350.68 and was down 3.9 percent for the week to post its worst weekly performance since December 2011.

The broader Nifty closed down 0.8 percent at 8,224.10. For the week it lost 3.7 percent, recording its worst weekly performance since mid-July.

Shares of Gail (India) fell 4.4 percent, while Oil and Natural Gas Corp and Reliance Industries Ltd slipped 3.5 percent and 2.63 percent, respectively.

Software services exporter Tata Consultancy Services , fell 1.66 percent as traders speculated the company would announce some restructuring, which may impact earnings outlook.

After market hours, TCS said in an analyst call it expected Q3 revenues to be in line and kept its EBIT margin band unchanged.

Other IT stocks such as Wipro Ltd ended down 0.58 percent and HCL Technologies Ltd closed 2.55 percent lower.

Meanwhile, caution ahead of the consumer inflation data later in the day dragged lenders including State Bank of India down 0.86 percent, ICICI Bank Ltd 0.47 percent, and Punjab National Bank down 0.51 percent.

Among the gainers, telecom shares such as Bharti Airtel ended up 1.35 percent on media reports of inclusion of additional spectrum auction.

(Writing by Himank Sharma; Editing by Sunil Nair)