Reports that the Institute of Chartered Accountants of India has asked companies to disclose and/or provide for all losses on derivative contracts from the current financial year led to fears that fourth quarter earnings of companies will be adversely affected.
Earlier in last month, investors anticipated impressive profit growth in fourth quarter following robust advance tax payments by companies.
The inflation too remain a cause of concern at a time when domestic industry was under pressure due to high prices. Consistent rise in inflation to 7.0 per cent has raised possibility that the government will intervene with tight monetary measures.
The Reserve Bank may raise the Cash Reserve Ratio (CRR) to rein in inflation. An increase in CRR would suck out liquidity in banking system and result in a rise in cost of funds and reduction in demand.
In the week to April 5, the BSE bellwether moved in a wide range of 16,236.70 and 15,297.96 before ending the week at 15,343.12, a net loss of 1,028.17 points from its last weekend's close of 16,371.29.
The broader 50-share S&P CNX Nifty of the National Stock Exchange also tumbled by 295.00 points, or 5.97 per cent to close the week at 4,647.00 from its previous weekend's close of 4,942.00.
Analysts said the market unlikely to stabilise as global factors remained negative throughout the week. On Friday, the US government released another round of heavy job losses, reviving fears about the health of world's biggest economy.
Capital Goods majors BHEL and L&T were the worst hit during the week. As a result, the BSE CG Index tumbled by 1,835.09 points or 12.69 per cent to 12,620.35 at the weekend.
The broad-based BSE-100 index fell sharply by 509.36 points or 5.92 per cent to finish the week at 8,095.02 from its last weekend's close of 8,604.38.
The BSE-200 index and the Dollex-200 were quoted sharply lower at 1,898.59 and 789.74 at the weekend compared to their previous close of 2,012.69 and 840.77 respectively.
The BSE-500 index dived by 350.33 points to end the week at 6,045.14 from its previous weekend's close of 6,395.47 and the Dollex-30 finished down at 3,147.20 from 3,372.43.
On the NSE, the S&P CNX Defty also dipped by 270.35 points or 6.29 per cent to close the week at 4,024.95 from its last weekend's close of 4,295.30 and the Nifty Junior was down 522.70 points or 6.30 per cent at 7,774.30 at the weekend from 8,297 at the last weekend.
0 comments :
Post a Comment