Greece crisis casts shadow on Indian mkts; Sensex tanks 790pts

Despite a USD 146-billion rescue package to Greece announced by European countries and International Monetary Fund (IMF) last Sunday, worried operators and investors went on profit-booking, expecting the problem might spread to other European countries.

The Bombay Stock Exchange 30-share barometer resumed weak at 17,536.86 and remained in negative terrain throughout the week to settle at 16,769.11, a steep fall of 789.60 points, or 4.50 per cent, over its preceding weekend's close.
The 50-issue Nifty of the National Stock Exchange also tumbled by 259.95 points, or 4.93 per cent, to close the week at 5,018.05.

Stocks belonging to metal sector were the top loser due to decline in prices at the London Metal Exchange (LME)."Weak global sentiment continues to haunt markets across the world and the fall in domestic equity market during the week is in the same line. The trend will continue for some more sessions," SMC Global vice-president Rajesh Jain said

Major selling was seen in metal stocks on concerns that monetary tightening in China will cripple the demand for metals. All the 13 sectoral indices of the BSE ended in the red, with BSE-Metal and BSE-Realty indices falling the most.

Only the top heavyweight and petro-chem giant RIL survived the all-round fall to close in the green, boosted by Friday's Supreme Court verdict in favour of the company on gas dispute with Reliance Natural Resources (RNRL). All other 29 Sensex constituents closed with sharp to moderate losses.

Banking and interest-related shares fell on fears that the RBI may resort to further monetary tightening to counter the soaring inflation.Foreign institutional investors (FIIs) pulled out nearly Rs 3,767 crore in the week, including provisional figures of May 6-7, casting a negative impact on the market.

Selling was so strong that all sectoral indices ended in the red by about 9.64 per cent and 0.57 per cent. The BSE- Metal plunged by 1,702.94 points, or 9.64 per cent, to 15,961.82, the BSE-Realty fell 332.39 points, or 9.52 per cent, and the Bankex dropped 649.21 points, or 5.82 per cent.

From the Sensex pack, Sterlite Ind slumped by 13.77 per cent, RInfra by 13.77 per cent, Tata Motors by 12.64 per cent, JP Asso by 11.80 per cent, Tata Steel by 9.72 per cent, Hindalco by 8.43 per cent, DLF by 8.42 per cent, ICICI Bank by 7.79 per cent and HDFC Bank by 7.24 per cent.The total turnover at the BSE and the NSE was slightly better at Rs 22,441.37 crore and 69,080.65 crore from last weekend's turnover of Rs 22,271.07 crore and Rs 67,522.70 crore, respectively.