Global cues drag Sensex 271 points

The countrys bourses took a beating on Friday,losing over one-and-a-half percentage points in line with global indices which fell over worries that Europes debt-cutting measures will harm global growth....

The countrys bourses took a beating on Friday,losing over one-and-a-half percentage points in line with global indices which fell over worries that Europes debt-cutting measures will harm global growth. However,benchmark indices ended the week in the black,gaining over a percentage point.

Investors probably wanted to wait and watch how the situation in the Euro zone region stabilises over the weekend. The euro was also under pressure. Besides,local results,especially State Bank of Indias,were not very encouraging, said Vaibhav Sanghavi,director,Ambit Capital. On Friday,the euro fell below $1.25 as of 10.02 am in London for the first time since March 2009.

The BSE Sensex slid 271.27 points,or 1.57 per cent,to close at 16,994.60 while the NSE Nifty was down 85.40 points,or 1.65 per cent,at 5093.5. For the week,the Sensex rose 1.34 per cent while the Nifty was up 1.5 per cent. According to BSEs provisional estimates,FIIs were net sellers to the tune of Rs 381 crore,while domestic institutional investors bought shares worth Rs 164 crore. From Monday to Thursday,FIIs bought shares worth Rs 765 crore,according to Sebi data.

The market remained volatile during the week gone owing to global factors. This will persist for some more time. A lot depends on how the trillion dollar package for Europe is implemented and if the austerity measures for the affected countries are accepted by their citizens, said Sanghavi.

Stocks fell around the world on Friday on concern that Europes debt crisis will limit growth and earnings of corporates. The Stoxx Europe 600 Index slumped 1.8 per cent at 10:36 am in London and the MSCI Asia Pacific Index fell 1.1 per cent. Deutsche Bank CEO Josef Ackermann said Greece may not be able to repay its debt in full and former Federal Reserve Chairman Paul Volcker said hes concerned the euro area may break up.

Most of the key benchmark equity indices in Asia Pacific declined. The Nikkei 225 and Hang Seng lost more than a percentage point,dipping 1.49 per cent and 1.36 per cent. The Kospi and Jakarta Composite bucked the trend,gaining 0.06 per cent and 0.38 per cent,respectively.