- Sensex logs 1st drop in 5 days after BSE's 3-hour outage hits tradingAfter 3-hour network outage, BSE Sensex resumes tradingNSE Nifty, BSE Sensex hit all-time highs on optimism fuelled by Budget hopesBSE Sensex closes lower in volatile trade after Budget fails to live up to big bang reforms hype
BSE indexes barring defensives end in red
* NSE bank index slumps 2.5 pct as bond yields surge
India's BSE index posts biggest weekly loss in over 2-1/2 years
(Reuters) - India's BSE index fell 1.4 percent on Friday and posted its biggest weekly loss since December 2011 as blue chips such as Reliance Industries were hit by a range of factors including profit-taking and disappointment over the budget's lack of specifics.
Shares had surged to a string of record highs since last week ahead of the federal budget on Thursday, but investors said the government had not spelled out its action on a range of issues, especially in terms of reducing subsidies.
Sentiment was also dampened by concerns about Portugal's banking sector that highlighted contagion risk in the euro zone.
All BSE indexes ended in the red except for those in defensive sectors like IT, FMCG and healthcare, sending the benchmark down 3.6 percent for the week, its biggest weekly fall since a 4.45 percent fall in December 2011.
With budget out of the way, traders say the focus would shift to global markets, progress on monsoon, and earnings next week.
"Near-term valuations were looking stretched. Now, perspective would be drawn from what will happen from the budget speech and in global markets," said Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance.
"Also, revenue growth estimates of the government in the budget look tad optimistic given the economy is yet to recover."
The benchmark BSE index lost 1.37 percent, or 348.40 points, to end at 25,024.35. The broader NSE index fell 1.43 percent, or 108.15 points, to end at 7,459.60, closing below the psychologically important 7,500 level. It fell 3.76 percent for the week, matching its worst weekly fall in March 2013.
Among blue chips, Housing Development Finance Corp fell 3.3 percent while Reliance Industries was down 3.1 percent.
The BSE capital goods index slumped 4.8 percent. Larsen & Toubro lost 4.9 percent while Bharat Heavy Electricals slumped 8.4 percent.
Banks also fell on potential losses on bond portfolios after the