Sensex hits 1-month low; down 90 points as rupee slumps below 57 against dollar
Erasing all early gains, the BSE benchmark Sensex today fell by over 90 points to hit a fresh one-month low as funds sold stocks of interest sensitive sectors led by realty, PSU and auto ahead of RBI policy review later this month, amid rupee slumping below 57 against dollar.Updated: Jun 07, 2013, 17:13 IST
Erasing all early gains, the BSE benchmark Sensex today fell by over 90 points to hit a fresh one-month low as funds sold stocks of interest sensitive sectors led by realty, PSU and auto ahead of RBI policy review later this month, amid rupee slumping below 57 against dollar.
The 30-share index closed lower by 90.26 points, or 0.46%, 19,429.23.
Similarly, the broad-based National Stock Exchange index Nifty closed flat and ended lower by 40.40 points, or 0.68%, at 5,881.00.
Also, MCX-SX flagship index, SX40, ended down by 67.62 points, or 0.58%, at 11,528.7.
In a volatile trade, Sensex made a weak opening but later recovered by 192 points in mid-session but failed to continue the momentum as the rupee slumped to below 57 level against the dollar and entire Asian market in the negative zone, amid a weak opening in European bourses, brokers said.
Ahead of its mid-quarter policy, RBI governor D Subbarao on Friday said its monetary actions in the coming months will be determined by the outlook on monsoon and ensuing impact on inflation.
"And most importantly we also chase monsoon like millions of farmers across the country. So, the monsoon outlook, the monsoon performance is going to be the important factor in determining the RBI policy in the next three months," Subbarao said.
The RBI is scheduled to unveil its first mid-quarter monetary policy review on June 17.
Out of 30 BSE shares, 22 stocks declined led by Bharti Airtel, Mahindra and Mahindra and NTPC.
Sectorally, the auto sector index suffered the most by losing 1.39% to 10,891.55 on weak rupee as most of the car makers depend on import of spare parts.
The realty index lost 1.36% to 1,683.45 followed by banking index by 1.34% to 13,985.75, followed by power index by 1.32% to 1,713.51.