BSE Sensex Posts Biggest Weekly Fall in Eight; Earnings in Focus
January 4, 2014 3:02 PM EST
The BSE Sensex and Nifty fell on Friday to mark their biggest weekly decline in eight as profit-taking hit blue chips such as Reliance Industries for a third consecutive day, extending the weak start to 2014.
The Bombay Stock Exchange (BSE) is lit up during 'Muhurat' (auspicious) trading to mark Diwali, the festival of lights, at a brokerage firm in Bombay November 12, 2004.
The Sensex has fallen in each of the three trading sessions of the new year, declining 1.35 percent after gaining 8.9 percent last year on the back of strong foreign buying.
Losses also tracked lower Asian shares after a sudden reversal in some very popular, and thus crowded, trades sparked a bout of global risk aversion.
"Q3 earnings would be slightly better than Q2. One should just focus on good quality businesses amid this volatility like ITC, Lupin" said Vivek Mahajan, head of research at Aditya Birla Money.
The Sensex fell 0.18 percent, or 37 points, to end at 20,851.33 and a weekly fall of 1.6 percent.
The Nifty fell 0.16 percent, or 10 points, to end at 6,211.15. It also ended down 1.6 percent for the week.
Both indexes marked their biggest weekly fall since the week ended November 8.
ICICI Bank has retraced almost the entire gain of 2.9 percent made in December over the last three trading sessions.
Among stocks that gained, Multi Commodity Exchange of India (MCEI.NS) surged 17.8 percent on acquisition hopes, after the Bombay Bullion Association said on Wednesday it was considering buying a 5 percent stake in the company.