Mumbai: After six weeks of gains including record-breaking run in November, the benchmark sensex fell nearly 236 points as investors opted for profit- booking at higher levels amid caution in the absence of definite trigger.
The week's most crucial event was the Reserve Bank of India (RBI) policy, maintaining the status quo on interest rate. The conditional cutting of rates in the near future failed to provide necessary impetus to investors minds.
Traders approach following Apex banks review was cautiously optimistic. The week also saw broader Mid-cap and Small-cap shares gaining upper-hand.
The market could not be brow-beaten further due to good FII buying of Indian stocks.
Also news specific action on heavy-weights like ITC last week following government acceptance of ban on sale of loose cigarettes, reversed this week on hopes that the proposal could be put on hold.
The benchmark sensex resumed higher at 28,748.22 and hovered between a high of 28,809.64 and a low of 28,370.73 before closing the week at 28,458.10, witnessing a loss of 235.89 points, or 0.82 per cent.
The sensex had gained 2,585.66 points or 9.90 per cent in the last six weeks.
The CNX 50-share Nifty also lost 49.95 points or 0.58 per cent to conclude the week at 8,538.30.
The CNX 50-share Nifty had also gained 808.55 points or 10.39 per cent in the last six weeks.
Selling was seen in key Oil&Gas, IT, Teck, Power, PSUs, Metals and HealthCare sectors while FMCG, Consumer Durables, Realty, Banking and Auto sectors gained.
Meanwhile, FPIs/ FIIs continued their buying spree, investing a net Rs 1,466.76 crore during week as per SEBI's statistics including the provisional figure of December 5.
As many as 21 scrips out of the 30-share sensex pack ended lower while nine others closed higher.
Major losers were Tata Steel (6.65 pct), Hindalco (6.12 pct), Dr Reddy's Lab (5.76 pct), Infosys (5.04 pct), Tata Power (4.03 pct), BHEL (3.97 pct), HDFC (3.97 pct), Gail India (3.89 pct), Bharti Airtel (3.73 pct), ONGC (3.60 pct), RIL (3.35 pct), M&M (2.51 pct), TCS (2.45 pct), Sun Pharma (2.17 pct) and Tata Motors (1.53 pct).
However, ITC rose by 7.84 pct followed by SSLT 4.50 pct, HUL 4.24 pct, AXIS Bank 3.62 pct, Icici bank 2.43 pct and Maruti 1.83 pct.
Among the S&P BSE sectoral indices, Oil&Gas fell by 3.18 pct, IT 3.12 pct, Teck 2.70 pct and Power 1.52 pct while FMCG rose by 5.62 pct, CD 3.25 pct, Realty 1.82 pct and Bankex 1.27 pct.
Small-cap and Mid-cap indices also rose by 1.81 pct and 2.22 pct respectively and outperformed the sensex.
The total turnover at BSE and NSE fell to Rs 18,072.01 cr and Rs 89,302.23 cr respectively from the last weekend's level of Rs 20,862.31 cr and Rs 96,919.64 cr.
Breaking the long five-week of losing string, the rupee appreciated by 26 paise to end the week at more-than one-week high of 61.77 against the Greenback.
This followed fresh dollar selling by exporters and some banks amid continued capital inflows.
However, dollar selling was so strong that weak local equities and firm dollar overseas could not stem the rupee rise, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 62.25 a dollar from previous weekend's close of 62.03 on sustained dollar demand from importers and weakness in local equities.
However, it later fought back to a high of 61.75 before concluding the week at 61.77, showing a rise of 26 paise or 0.42 pct. It had plunged by 76 paise or 1.24 pct in the last straight five weeks.
Breaking six-week of rally, the Indian benchmark S&P BSE Sensex finished down by 235.89 points or 0.82 pct during the week while FPIs/FIIs picked up shares worth USD 254.33 mln on the first four days of the week, as per Sebi data.
Meanwhile, the Reserve Bank of India (RBI) kept the key interest rates unchanged in its fifth bio-monthly monetary review on December 2, 2014.
In the forward market, premium dollar remained weak on consistent receiving by exporters.
The benchmark six-month forward dollar premium payable in May dipped to 217.5-219.5 paise from 224-226 paise last weekend and far-forward contracts maturing in November 2015 also dropped to 428-430 paise from 435-437 paise.
The RBI fixed the reference rate for the US dollar at 61,8535 and the euro at 76.5313 from last weekend's 61.9736 and 77.1633, respectively.
The rupee also recovered against the pound sterling to 96.92 from 97.34 last weekend and also bounced back to 51.26 per 100 Japanese yen from 52.48.
It too rebounded to settle the week at 76.27 per euro from preceding weekend.
