In highly volatile trade,the S&P BSE Sensex ended lower for the second day today,losing over 68 points on sustained selling by investors who fear RBI might take more tightening measures to support the falling Indian rupee.
The 30-share Sensex lost 68.16 points,or 0.36 per cent,to close at 18,664.88,after shuttling between 18,811.46 and 18,551.35. The key index had lost nearly 450 points yesterday.
Reliance Industries (RIL) shares gained 3.64 per cent,which saved the market from deeper fall,brokers said.
The sentiment was hit by steady fall in rupee,raising fears that RBI might take more tightening measures to check sliding domestic currency,brokers said. Investors are also concerned about a weak rupee hampering government efforts to revive economic growth.
The rupee tumbled by 63 paise to 61.40 against the dollar in the late morning trade.
Analysts said a weak trend in global markets on indications of a possible withdrawal of US monetary stimulus also hit the sentiment.
The broad-based NSE Nifty fell by 23.15 points,or 0.42 per cent,to end at 5,519.10,after dipping below a crucial 5,500 level in the intra-day trade.
SX40 index,the flagship index of Multi Commodity Exchange of India Ltd (MCX),closed at 11072.76,down 52.62,or 0.47 per cent.
Tata Motors remained under pressure after company posted lower-than-expected quarterly earnings. The stock fell 2.96 per cent.
In 30-BSE index components,15 stocks gained while other 15 closed with losses.
The IT sector index suffered the most by losing 1.60 per cent to 7,427.10,followed by auto index by 1.46 per cent to 10,076.06. FMCG index lost 1.37 per cent to 6,495.18 and Teck index by 1.16 per cent to 4,231.33.
Indian shares fall for 2nd day; Tata Motors,Lupin hit by earnings
(Reuters) Indian shares retreated for a second straight session on Wednesday as drugmaker Lupin slumped after domestic revenue fell,while Tata Motors was hit after reporting a 23 percent drop in quarterly profit.
Weaker Asian shares also weighed after the Chicago Federal Reserve Bank President,Charles Evans,said the U.S. central bank could scale back bond buying later this year and,depending on data,could do so next month.
Indian stocks have fallen in 10 of the last 11 trading sessions,as investors turn wary of slowing growth and the rupee that tumbled to a record low on Tuesday despite the central bank’s cash-draining measures.
“We need to see what sort of policy measures the government will take to build confidence around the currency at this point,and there’s some nervousness in the market about that,” said Neelesh Surana,equities head at Mirae Asset Management.
The benchmark BSE index fell 0.36 percent,while the broader NSE index dropped 0.42 percent.
Drugmaker Lupin dropped 6.68 percent after April-June domestic revenue fell 5 percent from a year earlier,with sales slowing at home as well as in Japan.
Tata Motors Ltd slid 3.01 percent after April-June net profit fell 23 percent from a year earlier,missing estimates.
Information technology companies fell as investors booked profits on recent gains from the weak rupee. HCL Technologies Ltd fell 4.01 percent,while Tata Consultancy Services Ltd dropped 2.53 percent and Infosys Ltd closed down 0.8 percent.
However,recent heavy losers such as Yes Bank Ltd,Bharat Heavy Electricals Ltd and Coal India Ltd gained on value-buying by some investors.
State-run Oil and Natural Gas Corp Ltd ended 2.02 percent higher after Credit Suisse and Barclays upgraded the stock,citing valuations and upside to earnings.