Mumbai: 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.
Foreign portfolio investors (FPIs) sold a net amount of Rs 1,203.02 crores shares during the week as per the SEBI's record including the provisional figure of June 5.
26 scrips out of the 30-share sensex pack ended lower while only four finished higher.
Major losers were Sun Pharma (12.14 pct), ICICI Bank (10.34 pct), Tata Motors (8.10 pct), SBI (7.32 pct), VEDL (7.09 pct), Hindalco (7.01 pct), ITC (6.72 pct), ONGC (6.53 pct), Axis Bank (6.30 pct), Tata Power (5.55 pct), Tata Steel (5.31 pct) Bajaj Auto (5.00 pct), Hero Motocorp (4.42 pct), M&M (4.37 pct) and Cipla (4.12 pct).
However, Coal India rose by 3.65 per cent followed by RIL 3.29 per cent , NTPC 2.52 per cent and Larsen 1.63 per cent.
Among the S&P BSE sectoral indices, Realty fell by 8.19 per cent followed by Bankex 6.14 per cent , HC 5.84 per cent, Auto 5.14 per cent, FMCG 4.52 per cent, CD 3.82 per cent, Metal 2.77 per cent and Power 2.48 per cent.
Small-cap and Mid-cap indices also dropped by 3.80 per cent and 3.38 pct respectively due to fresh selling pressure from retail investors.
The total turnover during the week on the BSE rose to Rs 16,643.47 crores from Rs 13,512.28 crores last week while for NSE, it fell to Rs 82,255.38 crores from Rs 1,10,289.59 crores.
The rupee ended higher by 7 paise at 63.75 against the US dollar on fag-end selling pressure from banks and exporters on hopes of resumption of foreign capital inflows.
The rupee resumed marginally higher at 63.80 per dollar as against the last weekend's level of 63.82 per dollar at the Interbank Foreign Exchange (Forex) Market and hovered in a range of 63.58 and 64.26 before ending at 63.75 per dollar, disclosing a gain of seven paise or 0.11 per cent.
It dropped to a fresh 20-month low of 64.26 intra-week against the American currency on fresh dollar demand from banks and importers.
Hiren Dhakan, Associate Fund manager, Bonanza portfolio, said,"Indian Rupee touched a fresh 20-month low against the US dollar and it has been continuously under pressure since RBI?s policy."
Pramit Brahmbhatt, Veracity Group CEO said," This week we witnessed a see saw trade for the week in USD/INR pair". The rupee moved in line with equity market. Local equities continued to extend its weakness from last week which forced Rupee to trade low during the week. But as the week progressed, the local equities tried to be stable along with global equities which helped Rupee to recover and close at 63.75.
On a weekly basis Rupee has appreciated and posted a weekly gain. The trading range for the Spot USD/INR pair is expected to be within 63.40 to 64.20.
Foreign portfolio investors (FPIs) showed a net capital outflows of USD 102.65 million during the first four days of the week as per the SEBI's record.
In the forward market, the premium ended mixed due to uneven demand and supply transactions of dollars.
Forward dollar premium payable in November finished lower at 217-219 paise as against the last weekend's level of 222.5-224.5 paise and far-forward contract maturing in May 2016 closed slightly higher at 440.5-442.5 paise as against 437.5-439.5 paise
The RBI fixed the reference rate for the US dollar at 63.8955 and the euro at 71.8185 from preceding weekend's level of 63.7615 and 69.9081, respectively.
The rupee fell against the pound sterling to end the week at 97.66 from 97.37 previous weekend and also moved down to 71.62 per euro from 69.97 per euro.
The domestic currency moved up further against the Japanese currency to end at 51.13 per 100 yen from preceding weekend's level of 51.50.
