Sensex drops 354 points to hit 4-week low

The BSE benchmark Sensex snapped its four-week of gaining streak and tumbled by 354 points to end at one month low of 17,429.56 due to fall in metal, realty, capital goods, auto and banking counters on the back of weak global cues. The market continued to feel the heat of over week-long logjam in Parliament over the CAG report on coal block allocations, fearing delay in further reform process.     Statement on interest rates given by Reserve Bank Governor D Subbarao in US also affected the market sentiment. He said “The battle against inflation has not ended yet, it is still much above RBI’s comfort level of 5-6 per cent and to control it we need to keep interest rates high, but to support growth we need to keep interest rates low.” The 30-share Sensex on Monday touched a high of 17,820.07, but later declined for the most of the week and touched a low of 17,337.61 before ending the week at 17,429.56, showing a net loss of 353.65, or 1.99 per cent. The index had gained 944.02 points, or 5.61 per cent, during the last four weeks. The NSE 50-share Nifty also dropped by 128.20 points, or 2.38 per cent, to end at 5,258.50. It had gained 286.85 points, or 5.62 per cent, in the last four weeks. The global markets were also under selling pressure for most of the week ahead of the much-awaited speech from US Federal Reserve Chairman Ben Bernanke on August 31 at an annual gathering of Central bankers in Jackson Hole town in Wyoming as investors waited for the outcome of the summit. According to experts, though seasonal rainfall trend has improved, crop sowing levels have remained lower due to below average monsoon that could have a “downside risk” to the economic growth forecast for the current fiscal, affecting summer crop outlook and food inflation. From gulftoday