Stocks tumble, caution advised
Weak global markets and a depreciating rupee on Monday dragged down the BSE's premier index, the Sensex, by 425 points or 2.6%, to end the day at 15,946 points. HT reports. Caught in a currency slidebusiness Updated: Nov 22, 2011 01:45 IST
Weak global markets and a depreciating rupee on Monday dragged down the Bombay Sensitive Exchange’s (BSE) premier index, the Sensex, by 425 points or 2.6%, to end the day at 15,946 points.
“The sentiment is certainly bearish and investors should wait for sometime till there is some positive news flow from the US and European markets before investing,” said Nirmal Jain, MD, India Infoline.The top losers during the day were ICICI Bank, which lost 4.9% to close at Rs 732.5, Infosys, which declined 2.9% to finish at Rs 2,661.2 and Reliance Industries (RIL) which fell 2.6% to close at Rs 786.9.
According to Jain, with some more steam left in the rupee’s decline, investors should exercise caution.
“The market may remain volatile this week as traders roll over positions in the futures and options (F&O) segment from the near-month November 2011 series to December 2011 series,” said a note by India Infoline.
According to Deven Choksey, CEO and MD, KR Choksey Shares and Securities, net selling by the foreign institutional investors (FIIs) due to a weakening rupee could also hurt promoters of several companies that hold foreign currency convertible bonds that may become due for redemption during this period of low rupee valuation.