After registering initial gains, the stock markets turned weak in the second half and the benchmark BSE Sensex closed 55 points down on Monday on selling in shares of software firms on concerns that the rising rupee will hurt their export revenues and growth.
Majority of the IT counters were at the receiving end due to sharp appreciation in rupee to a fresh nine-year high against the dollar. Dealers said it impacts their revenue and profits as these companies get 65-70 per cent of their revenue from exports.
As a result, operators and retail investors went on a selling spree and booked profits in these counters.
The Bombay Stock Exchange (BSE) 30-share sensitive index, Sensex, opened remarkably higher at 14,044.71 and touched a high of 14,067.07 on positive global advices.
Later, emergence of profit-booking at higher levels pulled it down to a low of 13,861.38. It concluded the day at 13,879.25 from last Friday's close of 13,934.27, a fall of 55.02 points or 0.39 per cent.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) also moved down by 6.20 points or 0.15 per cent to close at 4,111.15 from previous close of 4,117.35.
Some of the banking and metal counters also attracted profit-selling, weighing on the Sensex. However, last sessions's battered and top heavyweight, RIL, recovered smartly, partly cushioning the Sensex fall.
Foreign Institutional Investors (FIIs) sold shares worth Rs 131 crore (provisional) on May 4 while domestic funds pumped in Rs 299.10 crore on the same day.