Sensex falls further on sustained capital outflow; down 68 pts | business | Hindustan Times
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Sensex falls further on sustained capital outflow; down 68 pts

business Updated: Jan 31, 2011 16:47 IST

The BSE benchmark Sensex fell for the fourth straight session today, losing over 68 points, to five-month low on sustained selling by investors who were concerned that high input costs and rising interest rate would dent corporate earnings.

Besides, global stock markets were weak and offered no support. The Bombay Stock Exchange benchmark Sensex, which lost 755 points in the last three sessions fell further by 68.21 points to 18,327.76, a level last seen in early September.

The index dipped to 18,038.48 points intra-day, before recovering in the last 30 minutes of buying in fundamentally
strong stocks that were available at attractive low levels.

In a similar fashion, the broad-based National Stock Exchange index Nifty lost 6.25 points to 5,505.90, after touching the day's low of 5,416.65 points as stocks of realty, FMCG and tech sectors suffered the most.

While investors showed panic on rising input cost and hike in interest rate, foreign investors pared positions in view of unrest in Egypt.

Marketmen said that the gauge was the world’s worst performer this year after Egypt and has lost over 10 per cent
from its record high level set on last Diwali. Stocks have fallen each day after the Reserve Bank of India (RBI) raised
interest rates for the seventh time since last March to combat
accelerating inflation.

Foreign funds sold a net Rs 13.97 billion rupees of Indian equities on January 27. Asian stocks fell, dragging down a regional benchmark index by the most in a week, as demonstrations against Egypt’s government continued for a
sixth day and earnings reports disappointed investors.

The realty sector index suffered major losses, falling 2.23 per cent to 2,228.78. Jaiprakash Associates dropped 4.69
per cent to Rs 83.35 on fears that a further rise in interest rate would effect home sales.

The FMCG sector index fell 2 per cent to 3,366.20 as Colgate, a maker of soaps and shampoo, dropped 2.29 per cent
to Rs 823.70, its lowest close since November 26 as its third quarter profit declined.

As selling pressure spread over a wide-front, smallcap index fell by 0.80 per cent to 8,477.82 and midcap index by
0.44 per cent to 6,868.35.