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Selling aggravates, Nifty erases all its weekly gains

After falling sharply in the past two weeks there seems to be no respite as towards the fag end of the week indices erased all its weekly gains. The PNB fraud case which came to light during the week not only dragged the bank nifty but also dampened the sentiment across the street.

Meanwhile, the country’s exports increased by 9% in January, while trade deficit touched a three-year high of USD16.3 bn due to an increase in crude oil imports.

Banking stocks were in action as the Reserve Bank of India announced rules around bank loan defaults and abolishing a number of existing loan-restructuring mechanisms to create a “harmonised and simplified generic framework” to resolve NPAs.

Retail CPI inflation slowed down a little to 5.07% in January, compared to 5.2% in December.

On the other hand, India’s factory output expanded at 7.1% in December, slower than the 25-month-high growth of 8.8% in November

For the week, Nifty and Sensex ended almost unchanged.
The domestic equity market crawled up during the week gone by, but gave up the gains by the close of the week, inspite of positive global sentiments, principally due to home-grown PSU banking mess at the Punjab National Bank.

Generally such mess comes out during bottoming cycle, which PSU banks are passing through. Worst seems to have been discounted in the PSU banks, but positive triggers are awaited.

The combined net profit of 1,395 companies, which have declare ..

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