BSE Sensex snaps its four-week winning streak

STAFF WRITER 13:0 HRS IST

Mumbai, Jan 23 (PTI) Stocks: The BSE benchmark Sensex snapped its four-week winning streak and dropped by 695 points past week to close below the psychological 17,000 mark on all-round selling pressure following disappointment from key corporate earnings amid a weak trend in the global markets.

Global stocks tumbled after US President Barack Obama on Thursday proposed new restrictions on banks, which would prevent banks or financial institutions (that own banks) from investing in, owning or sponsoring a hedge fund or private equity fund.

Global markets had already recoiled in recent weeks on fears that demand from China would slowdown as Beijing taps the brakes on its roaring growth to stave-off inflation and to keep the economy from overheating.

Also poor show by some of the key corporate houses that announced their Q3 results past week infused selling pressure.

India ready for ‘any eventuality’ in case of another 26/11: Krishna

New Delhi, Jan 21: A day after the US warned Pakistan of the limits to India’s patience in the event of another Mumbai-like attack, External Affairs Minister S.M. Krishna on Thursday said the government would have to be prepared to meet any eventuality. “Yes, that is a worrying development because having been a victim of an earlier attack, gone through the anguish, the agony, the trauma, I think India certainly will have to be prepared to meet any such eventuality,” he told reporters. Krishna was responding to a question on US Defence Secretary Robert Gates’ remarks on Wednesday that it would be extremely difficult for India to show ‘restraint and statesmanship’ if another 26/11 attack was repeated. “Of course, the defence forces and the home ministry are in close touch and coordination with the external affairs ministry and it will be our endeavour to maintain peace and tranquility within India,” he said.

Core sector posts 6% growth

NEW DELHI, Jan 22 (PTI): Core infrastructure industries grew by 6 per cent in December 2009 against a meagre 0.7 per cent growth a year ago reflecting recovery in the industrial production.

Six key sectors - crude, petroleum refinery products, coal, electricity, cement, finished steel - showed a growth of 4.8 per cent in April-December 2009 against 3.2 per cent in the corresponding period last year, an official statement said today.

These sectors have a weight of 26.68 per cent in the country’s total industrial output.

Finished steel and crude oil turned the table, expanding by 9.6 per cent and 1.1 per cent respectively in December, against contraction of 8 per cent and 0.3 per cent last year.

Sensex nosedives below 17k level; Nifty below 5k pts

STAFF WRITER 9:56 HRS IST

Mumbai, Jan 22 (PTI) Continuing with its freefall, the BSE benchmark Sensex today tanked by 351 points to trade below 17,000 points in early trade on hefty sell-off by foreign funds amid the meltdown on the global markets on fears that China may further tighten its monetary policy.

The wide-based National Stock Exchange index Nifty, too, dipped below 5,000 points.

The 30-share Bombay Stock Exchange index, Sensex, which had lost nearly 590 points in the past three sessions, dipped below 17,000 points by losing 351.77 points to 16,699.37, lowest level since December 23, last year.

The wide-based Nifty plunged by 110.85 points to trade at 4,983.30.

All the sectoral indices were trading in the negative zone with losses up to 3.14 per cent, with capital goods and metal sectors leading the fall.

China's decision on January 20 to squeeze lending to cool down a overheated economy impacted the market sentiments, especially among the foreign funds.