Sensex sheds early gains to end lower on monsoon concerns
The Bombay Stock Exchange benchmark Sensex failed to hold on to early gains and closed with a loss of nearly 77 points on emergence of selling sparked by concerns over late monsoon.business Updated: Jun 25, 2009 17:18 IST
The Bombay Stock Exchange benchmark Sensex failed to hold on to early gains and closed with a loss of nearly 77 points on emergence of selling sparked by concerns over late monsoon.
The Sensex, which rose to 14,578.46 during the day, fell to finish with a loss of 77.11 points, or 0.63 per cent, at 14,345.62.
The 50-share National Stock Exchange index Nifty lost 51.10 points at 4,241.85, after touching the day's high of 4,337.95 points.
The market suffered losses because of reports of monsoon falling below normal and the expiry of the current month derivative contracts.
Selling pressure gathered momentum on fears that delay in crucial monsoon rains could hurt an already slowing economy. The annual monsoon rains, the lifeline for the country's rural economy, are expected to be below normal first in four years.
Sellers covered their pending positions on the last day of the June contracts in the derivatives segment.
The auto sector index suffered the most, losing 2.18 per cent at 4,618.81, because lower rainfall monsoon is expected to hurt farming, eroding the purchasing power of people in rural areas.