Sensex dips by over 8% on negative factors

Sensex registered a fall of 8.22 per cent during the week under review.

The non-event interim budget and worsening global recession took toll on share values as the benchmark Sensex registered a fall of 8.22 per cent during the week under review.

The Sensex ended below the 9K-mark after January 23,2009,when it was closed at 8,674.35.

Finance Minister Pranab Mukherjee on February 16 presented an Interim Budget,which was disappointing to the market participants,with no tax sops as well as any stimulus package to revive the sagging economy as per expectations.

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Distinctly weak global cues due to deepening global recession also further aggravated the situation.

At the week ended February 21,the Bombay Stock Exchange 30-share Sensex finished the week at 8,843.21,a steep fall of 791.53 points over the last weekend. Last week,the Sensex was gained by 333.88 points or 3.59 per cent.

The broad-based 50-issue Nifty of the National Stock Exchange also tumbled by 211.90 points or 7.19 per cent to settle the week at 2,736.45 from its previous weekend’s close.

Continued selling by Foreign Institutional Investors (FIIs) also was the cause of concern. They pulled out nearly Rs 1,725 crore in the week (including provisional figure of February 20),while domestic funds also were net sellers,mainly affecting the market sentiment.