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Weekly stocks review: BSE, NSE stay low

The FIIs lost 139.81 points in this week, following a precarious atmosphere in the interbank foreign exchange market, where the rupee weakened against the US dollar and continuous slide in the Asian market adversely affected the Indian bourses, leading brokers said.

The FIIs sold over 2.5 million ITC shares. Mirroring the downtrend, the BSE Sensitive Index (30 scrips) dropped below 3400 mark psychological barrier and closed at 3329.27 points, suffering a net loss of 139.81 points as against previous week's close of 3469.08 points.

The BSE National Index (100 scrips) also slipped below 1500 mark and finished at 1450.87 points over the last week's close of 1504.38 points decreasing 53.51 points.

The BSE-200 and Dollex Indices drifted lower by 12.84 and 09.34 points to 324.95 and 136.17 points as compared to previous week's close of 337.79 and 145.51 points respectively.

However, the total turnover on the exchange rose by Rs 3.5 billion to Rs 46.7 billion as against last week's total turnover of Rs 43.2 billion.

Due to poor offtake and industrial demand in the country, the economic growth plummeted to 4.7 per cent during the first half of the current financial year. The Securities and Exchange Board of India has set up a panel for plantation companies to frame regulations to government for collective investment units.

During the week, the Reserve Bank of India has set up a high panel working group headed by Industrial Development Bank of India Chairman S H Khan to harmonise the role and operations of financial institutions and bank in the capital markets.

In the midweek, the Delisting Committee of SEBI recommended that the basic minimum norms for listing of securities on any recognised stock exchange should be uniform for all the exchange and the stock exchange be permitted to prescribe additional norms over the above the minimum norms. The committee also suggested that bourses be allowed to fix the quantum of fees and there should not be any uniformity in this regard.

The National Stock Exchange put the circuit breaker limit on ITC when the price of the scrip crossed the minimum limits on Tuesday. Later, SEBI investigating committee revised the circuit breaker, resulting to a loss of several millions to some investors and correspondingly gain to some select traders, who refrained from squaring their deals even at lower level.

Pivotal prices on the NSE declined moderately on heavy selling pressure from FIIs and general investors. The NSE-50 Index closed at 965.15 points suffering a loss of 41.65 points as against the previous week's close of 1006.80 points. The NSE-50 (Defty) dollar-based Index finished at 846.60 points over the last week's close of 897.50 points.

The Midcap Index settled down at 1090.30 points as compared to previous week's close of 1137.60 points losing 47.30 points. The total turnover on the NSE drifted lower by Rs 532.4 million to Rs 84.3 billion as against last week's total turnover of Rs 84.9 billion.

During the week the RBI planned to introduce Indian money market dealing screen for primary dealers and financial institutions, through which it will conduct its open market operations. The BSE has applied permission for the same.

UNI