Benchmarks Sensex and Nifty today extended losses for the third day and ended at two-week lows dragged down by M&M, Tata Power and ICICI Bank shares as caution prevailed over the growing unrest in Iraq choking oil supplies and a weak monsoon stunting economic revival.
The S&P BSE benchmark Sensex slipped another 96.29 points, or 0.38 per cent, to end at 25,105.51 and the NSE 50-share Nifty moved down by 29.25 points, or 0.39 per cent, to finish at 7,511.45, its lowest close since June 5.
Capital outflows also affected the market sentiment. Foreign Portfolio Investors (FPIs) sold shares worth a net Rs 420.51 crore yesterday, as per provisional data.
Shares of public sector oil marketing companies (PSU OMCs) were mostly lower after the main US oil contract, West Texas Intermediate for July, fell 43 cents to USD 106 a barrel while Brent crude for August eased to trade near USD 115 mark.
Besides, tepid monsoon forecast and slowdown in buying by foreign funds, who have been major buyers on the domestic bourses, have dampened sentiments, brokers said.
Automakers like M&M and Hero MotoCorp saw selling on fears that a weak Monsoon will hit vehicle sales.
The southwest monsoon has further advanced into remaining part of Karnataka and Telangana, some parts of Madhya Maharashtra, Vidarbha and east Madhya Pradesh and most parts of Marathawada.
The 30-share index Sensex resumed higher at 25,237.54 and hovered in a range of 25,276.31 and 25,056.18 before ending at 25,105.51, showing a loss of 96.29 points or 0.38 per cent. It has now dropped by 415.68 points or 1.63 per cent in three days. At today’s value this is the weakest close for Sensex since 25,019.51 on June 5.
“Markets were lackluster over the week. Sharp rise in crude prices because of Iraq issue dampened sentiments ….Going ahead, we see the monsoon progress and the budget to be the two most important triggers for the markets,” said Dipen Shah, Head- Private Client Group Research, Kotak Securities.
Asian stocks ended mixed today as indices in Japan, Singapore and Taiwan moved down by 0.08 per cent to 0.46 per cent while indices in China, Hong Kong and South Korea declined by 0.11 per cent to 0.23 per cent.
European markets were trading higher in their early trade as dovish comments from Federal Reserve Chairwoman Janet Yellen earlier in the week continued to push indices closer to multi-year highs. Key indices in France, Germany and UK moved up by 0.06 per cent to 0.17 per cent.
Turning to the local market, 23 scrips out of 30-share Sensex pack ended lower while 7 counters finished higher.
Major losers were M&M (2.87 per cent), Tata Power (2.74 per cent), Hindalco Industries (2.18 per cent), Sun Pharma (2.01 per cent), Sesa Sterlite (1.08 per cent), SBI (0.98 per cent), ICICI Bank (0.90 per cent) and BHEL (0.77 per cent).
However, Axis Bank moved up by 1.35 per cent, Bajaj Auto 0.70 per cent, Bharti Airtel 0.52 per cent and TCS 0.50 per cent, among others.
Among the S&P BSE sectoral indices that closed lower were Healthcare 0.95 per cent, Auto 0.91 per cent, Capital Goods 0.84 per cent, Power 0.78 per cent and Metal 0.65 per cent. However, Consumer Durable index rose by 3.47 per cent.
For the week, the Sensex fell 122.66 points after it shed 168.29 points in the previous period. The Nifty weakened by 30.65 points for the week ended June 20, after dropping 41.30 points in the week before that.
Market breadth remained negative as 1,671 stocks closed with losses while 1,297 finished with gains. Total turnover dropped further to Rs 3,056.97 crore from Rs 3,883.53 crore yesterday.