Sensex ends in red for second consecutive week

Registering its second consecutive decline, the BSE benchmark Sensex shed 2.11 per cent during the truncated trading week ended November 11 amid heavy selling pressure in realty, banking, metal, capital goods and PSU sectors.

The market sentiment was bearish in view of lower IIP data and unexpectedly poor quarterly results from some companies.

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.