INDEX declines for the fifth straight day, export figures fail to cheer Dalal street
New Delhi : The benchmark Sensex fell 175 points to the lowest level in almost four weeks on Monday amid increasing fears the US Federal Reserve would start tapering its stimulus programme after better-than-expected jobs data.
The index declined for the fifth straight day even as data showing exports in October rose at the fastest pace in two years. Sentiment was also dented as the rupee fell below the 63-level against the dollar.
Hindalco, Larsen and Toubro and ONGC were the major losers as 24 of the 30 Sensex shares declined. Reliance Industries and Tata Motors were the biggest drag on the index. Realty and capital goods led 10 of the 13 BSE sectoral indices lower.
The Sensex opened lower and hovered in a range of 20,453.15 to 20,672.53 before ending at 20,490.96, a fall of 175.19 points or 0.85%.
The index is at the lowest level since ending at 20,415.51 on October 17. It has plunged 748.40 points in the five sessions since the closing peak of 21,239.36 during the special muhurat session on November 3.
The market breadth remained negative as 1,358 shares ended lower and 1,027 gained. Foreign institutional investors remained net buyers as they injected Rs 412.03 cr in stocks last Friday, according to provisional data issued by the stock exchanges.
“With positive US jobs data, investors fear that US Fed can once again taper stimulus programme, which will reduce liquidity in the markets,” said Nidhi Saraswat, Senior Research Analyst at Bonanza Portfolio Ltd. “Also, profit booking was evident in index heavyweights.”
The 50-share CNX Nifty dropped 61.95 points, or 1.01%, to 6,078.80. The SX40 index on the MCX Stock Exchange ended 93.4 points lower at 12,180.24.
Rupee falls 77 paise
The rupee tumbled 77 paise to an almost two-month low of 63.24 against the dollar as the trade deficit widened from a month ago and the US currency strengthened after encouraging jobs data renewed fears of stimulus tapering.
Sustained capital inflows could not stem the rupee’s decline, a forex dealer said. It fell for the fourth straight day to end at the lowest level since 63.38 on September 18. At the interbank foreign exchange market, the rupee opened lower at 63 a dollar from the previous close of 62.47 and recovered to a high of 62.93.
However, it dropped to a low of 63.44 amid heavy dollar demand from importers, mainly oil refiners, and weak equities. The rupee closed at 63.24, a fall of 77 paise or 1.23 per cent. In four sessions, it has slumped 162 paise.