Rupee spooks markets again, Sensex sheds 75 pts
In a volatile trade, the Bombay Stock Exchange benchmark index Sensex on Friday fell further by over 75 points on heavy selling by funds in IT stocks on worries that the rising rupee may hurt revenues.business Updated: Jan 08, 2010 18:35 IST
In a volatile trade, the Bombay Stock Exchange benchmark index Sensex on Friday fell further by over 75 points on heavy selling by funds in IT stocks on worries that the rising rupee may hurt revenues.
The Sensex, which had lost 85 points in the previous session after a four-day rally, lost another 75.43 points at 17,540.29 as heavy-weight stocks in the IT, metals and refinery counters fell sharply.
Another reason for the fall was the Reliance counter that fell 0.47 per cent after news trickled in that the company has sweetened its offer to buy a controlling stake in the bankrupt American chemicals major LyondellBasell.
The key index shuttled between 17,658.12 and 17,508.96 points during the day as trading activity turned choppy on alternate bouts of trading.
After hitting a 15-month high yesterday, the rupee opened the day eight paise down at 45.75 against the dollar as the US currency strengthened against the euro and the yen. Yesterday the local currency rallied 17 paise to close at 45.67/68 a dollar.
Another reason for the fall of the local unit was the flat equity markets that provided little clarity on the direction of fund flows which put pressure on the rupee, dealers said.
Similarly, the wide-based NSE' Nifty 50 after opening nine points up broke the psychological 5,250 mark falling 18.35 points to shut the shop for the day at 5,244.75, after moving between 5,276.75 and 5,234.80 during the session.