The markets finished in Red for the third day in a row on global cues, increased capital outflow on economic growth worries and deepening Euro zone debt crisis.
Sensex, which lost 220 points in the last two trading sessions, plunged by 253.37 points, or 1.56%, to 15,965.16. Nifty settled below 4,900 level by dropping 82.65 points, or 1.68%, to 4,841.60. The markets closed the week with a loss of 2%, making it the fifth successive weekly fall.
IT stocks, which get over 50% of their revenue from Europe and the US suffered heavy losses. TCS dropped 1.69% to Rs 1,224.75 and Infosys declined by 2.13% to Rs 2,387.80.
US markets ended sharply in the red on Friday. Wall Street sell-off came on account of the release of the above mentioned report from the Labor department showing much weaker than expected job growth in the month of May. The Dow Jones industrial average lost 241.92 points, or 1.95 percent, to 12,151.53. The S&P 500 Index dropped 28.63 points, or 2.18 percent, to 1,281.70. The Nasdaq Composite fell 70.26 points, or 2.49 percent, to 2,757.08.
Asian shares tumbled on Monday as a scenario of Euro zone breakup is weighing on markets amid decline in US economic growth and a sharp slowdown in China. Japan's Nikkei 225 index was trading 2.07% lower at 8,266.75 and Hong Kong 's Hang Seng index was trading lower at 18,101.12, down 2.4%. South Korea's Kospi index was trading 2.5% lower at 1787.45. China's Shanghai index was trading at 2343, down 1.2%.
After plunging to a near-five month low, the markets have reversed some of their losses. Both the Sensex and the Nifty are down 0.7 percent as sentiment turned bearish in global markets following poor US jobs data and concerns of a slowdown in China. . Sensex, the barometer of the Indian economy, was trading at 15,849, down 115 points and up 101 points from the day’s low. Nifty was trading down 37 points to 4,804.
Rupee strengthened against the US dollar after a weak start. The partially convertible rupee was at 55.48 per dollar, up 6 paise against its previous close of 55.54.
Other Economic and Political News:
- Manufacturing sector activity keeps pace in May: survey
- PM sets up mechanism to fast track project implementation
- Planning Commission may lower growth target to 8% for 12th-Plan period
- NMDC to start coal production by 2014
- Maruti to spend Rs.4,000cr on new Gujarat car plant
- Hyundai goes back to drawing board for India diesel plant
- Jindal Stainless seeks to reschedule Rs.9,000cr debt