Sensex extends losses for the 2nd straight week, down 205 points

Stocks: Key indices posted modest losses tracking weakness in global stocks and after the Federal Reserve hiked the fed-funds rate by a quarter-point to between 1 % and 1.25 %.

The S&P BSE Sensex shed 205.66 points or 0.66 % to settle at 31,056.40. The sensex has dropped by 216.89 or 0.69 per cent in two weeks.

The Nifty 50 index dropped 80.20 points or 0.83 % to settle at 9,588.05.

There had been concerns that higher interest rates in the United States will boost returns on US debt and bank deposits, drawing money back from riskier markets.

Trading for the week began on a dull note as the key benchmark indices registered modest losses on Monday.

Key benchmark indices garnered modest gains after gyrating in a small range during the day on Wednesday as firmness in most global stocks and data showing wholesale price inflation easing in May, supported gains on the bourses.

Key benchmark indices registered modest losses on Thursday weighed by weakness in global stocks as investors stepped back from risky assets following the Federal Reserve's policy decision.

From the 30-share Sensex pack, 22 stocks rose and eight fell.

Reliance Industries (RIL) jumped 3.92 %. The stock was the biggest gainer from the Sensex pack. RIL and BP on Thursday announced that they are moving forward to develop already-discovered deepwater gas fields, bringing new gas production for India.

The two companies have agreed to deepen and expand their partnership to work jointly across a wide range of areas throughout India's energy sector.

IT stocks dropped on recent slide in tech stocks in the US and after anemic economic data in the US, the biggest IT outsourcing market for Indian IT companies.

On the macroeconomic data front, merchandise exports have shown growth of 8.32 % in dollar terms valued at USD 24014.62 million during May 2017 as compared to USD 22170.62 million during May 2016.

The annual rate of inflation, based on monthly wholesale price index (WPI) stood at 2.17 % (provisional) for the month of May 2017 over May 2016 as compared to 3.85 % (provisional) for the previous month.

The retail price inflation, as measured by the consumer price index (CPI), slowed to 2.18 % in May from 2.99 % in April 2017 as food prices started falling from their year-ago level.

The index of industrial production (IIP) rose by 3.1 % in April led by robust growth in electricity generation.

On the global front, the Federal Reserve hiked the fed-funds rate by a quarter-point to between 1 % and 1.25 %, as expected, after its two-day policy meeting on Wednesday.

Major losers from the sensex pack were TCS 4.49 %, followed by Larsen 2.81 %, M&M 2.66 %, Lupin 2.55 %, Tata Motors 2.50 %, Maruti 2.48 %, Coal India 2.39 %, Cipla 2.35 %, Bharti Airtel 2.04 %, Icici Bank 1.88 % and ONGC 1.36 %.

However, other gainers from sensex pack were Dr Reddy's Lab 1.77 % followed by NTPC 1.49 % and Powergreed 1.33 %.

Among the S&P BSE sectoral indices Metal fell by 2.42 % followed by IT 2.15 %, Teck 2.03 %, Auto 1.55 %, Capital Goods 1.40 % and Bankex 0.86 %.

However, Realty index rose by 4.47 %.

Small-cap index rose by 0.76 % while Mid-cap index fell by 0.46.

The total turnover during the week on BSE dropped to Rs 18,341.14 cr from the last weekend's level of 20,950.40 cr while NSE rose to Rs 1,16,212.33 cr from Rs 1,10,995.07 cr last week.