The markets logged heavy losses in the week under review on the back of ongoing euro crisis and domestic growth issues. The markets saw red on all five trading days of the week, with the broader markets facing brunt of the selling.

Despite leadership changes at Greece and Italy, the fears of debt contagion spreading to euro area weighed on the markets sentiment globally. Spain’s bond 10-year bond yields soared to record highs reflecting fears the euro zone’s debt crisis was spiraling out of control.

SMC Global in its weekly wrap-up says that the debt crisis in the European region is spreading as suggested by the rising yields of countries like Italy and Spain and increasing the contagion threat to US banks because of their exposure to European region. The region is still struggling to find a solution to the debt crisis in view of the fiscal and monetary limitations.

It further adds that, the pace of our economic growth is moderating further. The corporate are seen deferring the expansion plans as the demand both locally and globally is weakening. To add to the woes, the depreciation in the local currency because of widening trade deficit and chances of fiscal slippages has increased the fuel inflation for the economy and losses for the companies that are importing raw material or has borrowed money through ECB route, etc.

Amid all these news flows and worries, the Sensex plunged to a low of 16,165. The BSE benchmark index finally ended with a loss of 4.8 per cent or 821 points at 16,372.

The NSE Nifty fell below the psychological 5,000-mark, to end the week with a loss of 263 points at 4,906.

The BSE Mid-cap and the Small-cap indices logged heavier losses. while the former tumbled over 7 per cent to 5,716, the latter plunged 8.6 per cent to 6,182.

Among the Sensex stocks, Jaiprakash Associates slumped over 18 per cent to Rs 62.20. Capital Goods major BHEL crashed by almost 15 per cent to Rs 276. For more visit: Business Standard

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