Sensex ends in red for 2nd week

The BSE and NSE were closed on November 7 on account of Eid-ul-Azha and on November 10 for Gurunanak Jayanti.

The BSE Sensex fell by 369.79 points,or 2.11 per cent,to end at 17,192.82 during the trading week ended November 11. The 50-share S&P CNX Nifty also declined by 115.35 points,or 2.18 per cent,to 5,168.85.

Notably,the BSE Mid-Cap and Small-Cap indices underperformed in comparison to the broader market during the week under review. While the BSE Mid-Cap index declined by 2.16 per cent,the BSE Small-Cap index slipped by 2.78 per cent.

The maximum fall in the key benchmark indices occurred at the fag-end of the week,following the release of data that showed industrial production rose by a dismal 1.9 per cent in September,2011,the lowest rate of expansion in 2 years,while food inflation remained at elevated levels in late October,2011.

Banking stocks fell as the 10-year benchmark bond yield approached 9 per cent during the week. Bond yields and bond prices are inversely related. Lower bond prices may result in depreciation in the valuation of banks’ portfolios of

government securities.