Business   

Sensex down 89 points

MUMBAI: Stock markets beat a hasty retreat after a strong two-day rally as the soaring rupee took a toll on export-oriented IT sector, pulling down the Sensex by 89 points on Tuesday on unwinding of positions by operators.

The rupee's sharp appreciation to below 42-level will have adverse impact on the profit margins of IT companies with large export revenues.

The 5.3 per cent rise in rupee value so far in the year could erode profits of these companies by over one to two per cent.

Reflecting the slide in IT stocks, the BSE IT Index fell by 127.65 points or 2.48 per cent to end at 5022.63. The fall in IT shares also pulled down the Sensex, which moved downwards after opening firm at 13733.18 and later ended at 13607.04, a net loss of 88.54 points or 0.65 per cent from Monday's close of 13695.58.

The Sensex had gained 582 points or 4.44 per cent in the last two trading sessions.

The S&P CNX Nifty dropped by 28.40 points or 0.71 per cent to close at 3,984.95 from previous close of 4,013.35.

The top heavyweight Reliance Industries bucked the trend and scored impressive gains to close at a new peak. Infosys Tech, TCS Ltd, Wipro, Satyam Computers, Tata Motors and Cipla were among major losers. The market turned negative with 1,463 counters falling even as 1,085 registered gains. — PTI

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Tata Steel unveils funding plans for Corus buyout
China seeks market economy status
GM rolls out Chevrolet Spark
BEL net profit at Rs. 714 cr.
New norms issued for bank lockers
CESC-Pathik Retail merger swap ratio fixed
Power Grid files draft prospectus for IPO
Sensex down 89 points
Rupee ends lower against $
Exchange rates
Bullion rates
No ban on expanding futures list
RBI extends rupee export credit rate
Volvo to buy road business
Goldman Sachs ups stake in Indiabulls
Areva waives minimum acceptance
HCL Tech Q3 net income up 72 p.c.
L&T to set up joint venture with Mitsubishi
DRL to participate in USP verification programme
Perot Systems opens new centres
Senior appointments

Copyright © 2007, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu