Sensex snaps 5-week gaining streak

Last Updated: Sat, Oct 13, 2012 12:13 hrs

The Sensex snapped a five-week streak of gains on Friday, as bellwether Infosys slumped after disappointing investors with its growth outlook, with caution also setting in ahead of key inflation data next week.

Worries that India would post high inflation data on Monday and erode pros-pects of an interest rate cut by the Reserve Bank of India (RBI) at the end of the month hit financial stocks such as ICICI Bank.

Analysts say shares are expected to remain volatile next week, as a host of key blue chip stocks report earnings, starting will Reliance Industries on Monday.

The Sensex fell 0.69 per cent, or 129.57 points also known as the Sensex, fell 1.39 per cent for the week.

The 50-share NSE index fell 0.56 per cent, or 32 points, to 5,676.05 points and lost 1.23 per cent for the week.

Stocks were not impressed by the modest improvement in India’s industrial output for August, while inflation slowed, improving the case for a cut in interest rates that both businessmen and politicians have been pleading for.

Shares in Infosys Ltd, the country’s second-ranked software services provider, fell 5.65 per cent after it disappointed investors with weaker-than-expected margins. Financial stocks such as ICICI Bank also fell on fears of high inflation data on Monday. ICICI ended down 1.25 per cent.

Delhi based property developer, Unitech shares fell 3.3 per cent on profit-taking after yesterday’s 17.2 per cent gain.

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