Sensex loses 571 points, slumps to two-month low (Weekly Market Review)

MUMBAI - A benchmark index of Indian equities markets slumped nearly three percent this week to hit a two-month low, on 2G spectrum allocation scandal and weak global cues.

The Bombay Stock Exchange (BSE) 30-share benchmark index ended the week at 19,585.44 points, down 2.84 percent or 571.45 points from the previous week.

Indian equities markets witnessed extremely volatile trading this week after the country’s top statutory audit agency Comptroller and Auditor General (CAG) said the the minister of communications and IT arbitrarily allocated 2G spectrum which has caused a presumptive loss of Rs.1.76 trillion ($40 billion) to the exchequer.

The BSE Sensex plunged 345 points Friday on late hour panic selling.

At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty ended the week over two-month low at 5,890.30 points. The index slumped nearly two percent Friday taking the weekly decline to 181 points.

Broader markets also closed deep in the red this week. The BSE realty index plunged nearly four percent on the last trading day of the week. The BSE midcap index fell 1.99 percent and the BSE smallcap index closed 2.08 percent down Friday.

Heavyweight Reliance Industries Ltd fell 3.46 percent to Rs.996.85 Friday.

Other major Sensex losers Friday were Reliance Infra, down 5.25 percent at Rs.945.35; Hindalco Industries, down 4.27 percent at Rs.212.85; Wipro, down 4.01 percent at Rs.401.65; and Reliance Comm, down 3.57 percent at Rs.148.40.

Most Asian markets ended the week in the red. Hong Kong’s Hang Seng ended the week 0.13 percent down at 23,605.71 points.

However, Japanese markets ended modestly higher at 10,022.39 points and the Shanghai Composite index ended 0.81 percent higher at 2,888.57 points.