Sensex ends lower by 331 pts at 6-week low
The BSE benchmark sensex ended lower by 331 pts at 6-week low to 19,429.23 on fresh selling pressure from operators mainly in Consumer Durable, Auto, Power, Banking, Refinery and PSU sectors due to fall in output amidst slowed down in foreign capial inflows.business Updated: Jun 08, 2013 16:14 IST
The BSE benchmark sensex ended lower by 331 pts at 6-week low to 19,429.23 on fresh selling pressure from operators mainly in Consumer Durable, Auto, Power, Banking, Refinery and PSU sectors due to fall in output amidst slowed down in foreign capial inflows.
The sentiment was also affected by a weak rupee which slumped to almost one-year low below 57.00 against the USD.
Ahead of its mid-quarter policy on June 17, RBI said its monetary actions in the coming months will be determined by the "monsoon outlook" and ensuing impact on inflation. This triggered selling by investors, who were betting on a rate cut by RBI this month, said experts.
With a HSBC survey showing that manufacturing sector output fell in the month of May -- first decline since March 2009 -- shares from oil&gas, power, consumer durables and capital goods saw selling pressure.
The Bombay Stock Exchange 30-share Sensex resumed higher at 19,859.22, but dropped to 19,395.32 before settling at 6-week low of 19,429.23, showing a loss of 331.07 points or 1.68 per cent. It had last ended at 19,387.50 on April 29,2013.
The NSE 50-share Nifty also dropped by 104.95 points or 1.75 per cent to finish at 5,881.00.
On the contrary, IT stocks were in keen demand on fall in the rupee value as it will boost their revenue. Infosys jumped nearly by 1.63 per cent on hopes that co-founder N R Narayana Murthy, who will be assuming the post of executive chairman, will propel back the IT major into high-growth trajectory.
Country's top software services exporter TCS and third Wipro also rose by 1.56 per cent and 2.77 per cent.