Markets snap 4-day rally on rupee worries, Sensex falls 85 pts
The BSE Sensex snapped a four-day rally today and shed 85 points, as funds booked profits in heavy-weight stocks led by software counters on concerns that a stronger rupee will hurt their revenues, coupled with weak global sentiment.business Updated: Jan 07, 2010 18:41 IST
The BSE Sensex snapped a four-day rally today and shed 85 points, as funds booked profits in heavy-weight stocks led by software counters on concerns that a stronger rupee will hurt their revenues, coupled with weak global sentiment.
The Sensex, which had been on an onward march since the past four sessions gaining over 1.35 per cent, fell by 85.41 points to 17,615.72. The bellwether index touched a low of 17,566.54 and a high of 17,733.34 during the day.
The rupee surged to an over 15-month high today buoyed by a weakening dollar against all leading currencies backed by large dollar sales by foreign banks, but buying by importers and a weak share market prevented a sharper rise.
The rupee woes pulled down the BSE IT Index by 2.22 per cent. This is the second straight fall for the IT counters. The domestic software companies get over 50 per cent of thier revenues from the US.
However, a surge in the refinery stocks led by the market leader Reliance Industries and Aban Offshore saved the markets from a major fall.
The broader NSE Nifty 50 also followed suit shedding 18.70 points to 5,263.10, after dipping to a low of 5,244.75.
Among the Sensex counters, 18 declined while 12 ended in the positive zone as IT, auto, and healthcare counters were on weak wicket on profit selling by funds.
TCS declined the most and to the lowest level in three weeks, while Infosys, dropped the most in over a month after the rupee gained for a fourth day. TCS fell by 2.61pc to Rs 714.65, Infosys 2.30pc to Rs 2,525.25, and Wipro 2.25pc to Rs 677.55.