Markets fall for 2nd week; RBI rate stand disappoints

Mumbai: Both key benchmark indices like S&P Bombay Stock Exchange (BSE) Sensex and CNX Nifty has ended in the red for a second consecutive week due to persistent selling pressure mainly in power, banking, auto, realty and PSU counters in view of fresh foreign capital outflows.

Interest rate sensitive realty and banking stocks bore the brunt of selling after the Reserve Bank of India left repo rate unchanged at 7.75 per cent, but cut SLR by 0.50 per cent to 21.50 per cent.

Markets were expecting the central bank to continue the rate cut cycle after it surprisingly slashed key lending rate repo by 0.25 per cent in mid-January.

Poor earnings from some blue chip companies coupled with uncertainty on outcome of the Delhi Assembly polls also affected the market sentiment.

Global market ended mixed after the European Central Bank abruptly pulled back its soft treatment of Greek debt and cancelled its acceptance of the country’s bonds in return for funding.

The S&P BSE Mid-Cap index fell 247.91 points, or 2.31 per cent, to conclude at 10,490.68, while S&P BSE Small-Cap index plunged 251.92 points, or 2.22 per cent, to settle at 11,077.34.

Among the Sensex shares, 21 declined and the rest logged gains. .