In spite of last two days’ recovery, both key indices Sensex and Nifty continued to decline for the straight fifth week on persistent selling pressure due to sustained depreciation of the rupee against the US dollar.
Fresh outflows from foreign institutional investors also affected the market sentiment.
Stocks of Healthcare, Auto, Realty, and FMCG sectors fell on heavy selling pressure while Metal, IT and PSU counters firmed up on good buying support.
The Sensex dropped below 18,000 level after 11 months as the rupee plunged to an intra-day record low of 65.56 per dollar on Thursday in spite of various steps taken by Reserve Bank of India.
However, fag-end buying following assurance given by finance minister P. Chidambaram that encouragement of growth will remain the government’s focus, coupled with positive Chinese data, pushed up the Sensex to a high of 18,587.38.
Fresh measures announced by the RBI to increase the availability of cash in the banking system also gave some relief to the market.
Bombay Stock Exchange’s 30-share barometer resumed lower at 18,587.38 and dropped further below 18,000 level since Sept 2012 to 17,759.59 before ending at 18,519.44, disclosing a loss of 78.74 points or 0.42 per cent.
It has lost 1,630.41 points or 8.09 per cent during the five weeks.
The NSE 50-share Nifty also dropped 36.10 points or 0.66 per cent to 5,471.75. It has fallen 557.45 points or 9.25 per cent in five weeks.
Brokers said market sentiment was hurt by sustained weakness in the rupee and speculations that the US Federal Reserve would start withdrawing its bond-buying programme next month.
Among the 30-shares Sensex pack, 16 scrips ended lower while 14 scrips gained.