BSE Sensex falls 1 pct,posts 6th day of declines over US Fed taper fears

BSE Sensex marks longest losing streak since the slump in the Indian rupee in late July.

Written by PTI | Mumbai | Published: November 12, 2013 4:07:42 pm

Extending its freefall to the sixth session in a row,the benchmark BSE Sensex today slipped by 209 points to over one-month low as rupee approached the 64-mark against dollar,ahead of IIP and retail inflation data.

Markets Top Gainers,Markets Top Losers

The BSE Sensex dropped by 209.05 points,or 1.02 per cent,to 20,281.91,a level last seen on October 10. The bluechip index has now lost close to 1,000 points in six trading days after its record closing high of 21,239.36 on Diwali.

26 of the 30 Sensex stocks declined led by Tata Motors,ICICI Bank,Reliance Industries,HDFC Bank HDFC,Larsen & Toubro,Infosys,State Bank of India,Sesa Sterlite,Oil & Natural Gas Corpn ,Tata Consultancy Services,Bajaj Auto and Hero MotoCorp

“Investors opted to book profits ahead of IIP and inflation data. Rupee too showed weakness against dollar. European markets opened lower and further dampened sentiment,” said Rakesh Goyal,Senior Vice President,Bonanza Portfolio.

On similar lines,the broad-based National Stock Exchange index Nifty fell by 60.75 points,or one per cent,to 6,018.05 dragged by stocks of metal,power and banking sectors.

Also,SX40 index,the flagship index of MCX-SX,closed 93.76 points down at 12,086.48.

Brokers said the selling pressure gathered momentum as Indian rupee continued to slide and hit an intra-day low of 63.83,fanning fears of rise in inflation which may compel the RBI to hike interest rates further.

The Indian rupee,which till yesterday had fallen for five days,is trading at levels seen two months ago and devalues foreign investments in stocks and bonds,said analysts.

Car sales,often considered by investors as a signal of consumer sentiment,also gave little cheer with domestic sales declining by 3.88 per cent in October.

Sectorally,the metal sector index suffered the most by losing 1.80 per cent,followed by power index (1.75 per cent),Banking index (1.62 per cent) and auto index (1.62 per cent).

HIGHLIGHTS

* BSE index closes down 1.02 pct,NSE index falls 1 pct

* Banks fall ahead of CPI data on interest rate hike worries

* Sesa Sterlite falls after court upholds mining ban

Indian shares fall 1 pct; post 6th day of declines

(Reuters) – BSE Sensex fell for a sixth straight session on Tuesday to mark its longest losing streak since late July,a turbulent period marked by the slump in the rupee,as profit-taking continued after the benchmark index’s record high earlier this month.

More worryingly for investors,fears have resurfaced that the U.S. Federal Reserve would scale back its bond purchases earlier than anticipated after stronger-than-expected jobs data,the same fears that punished Indian markets over the summer.

Lenders such as ICICI Bank also fell on caution ahead of consumer prices data due later in the day,amid fears that accelerating inflation would lead the central bank to raise interest rates for a third time this year.

“I think we are seeing some consolidation since there is a genuine fear that the U.S. tapering will start sooner than expected,” said Sudip Bandyopadhyay,chief executive of Destimoney Securities Pvt Ltd.

“One needn’t be extremely worried,but the momentum has turned negative for now which is leading to some amount of nervousness.”

The BSE index closed down 1.02 percent,marking its longest losing streak since falling for eight consecutive days from July 24 to Aug. 2.

The broader NSE index ended 1 percent lower.

ICICI Bank fell 2.4 percent while Axis Bank Ltd closed 2.7 percent lower ahead of the consumer price inflation data.

Punjab National Bank and State Bank of India also closed lower.

Shares in Tata Motors Ltd fell for a second day closing down 4.53 percent after its quarterly results on Friday showed that adjusted margins at its core Jaguar Land Rover unit came in lower than expected.

Shares in Sesa Sterlite Ltd fell 3.4 percent after India’s Supreme Court upheld on Monday a mining ban at top iron ore producing state of Goa.

Other blue chips also fell on profit-taking.

Larsen & Toubro Ltd,which has gained almost 20 percent since the September end,fell 1.57 percent.

Tata Steel Ltd shares,which have gained more than 7 percent this month,fell 2.31 percent on Tuesday.

However,Canara Bank Ltd shares rose as much as 9.8 percent during the day and closed 1.86 percent higher after the state-owned lender reported lower non-performing assets on a quarter-on-quarter basis,and higher net interest income.

FACTORS TO WATCH

* Dollar nears 100 yen on rising yields,Fed outlook

* Brent falls to $106 on Iran hopes,strong dlr

* Share gains flag as China plan awaited,dlr firm

* Foreign institutional investor flows

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