The Hindu : Business : Sensex sheds 186 points

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Sensex sheds 186 points

Profit taking and slowdown in FII inflows impact

MUMBAI: For the first time in about three weeks, the Bombay Stock Exchange benchmark index, Sensex, on Tuesday closed below the psychological 20000-mark, plunging 186 points in the last hour trade on heavy profit booking in blue chips like Infosys, DLF and Tata Steel.

Analysts said fund requirements of the mega initial public offering (IPO) of State-owned Coal India Ltd (CIL), which is expected to raise about Rs.15,000 crore, and a slowdown in the foreign fund inflows contributed to the Sensex's fall.

Despite firm cues from overseas markets, the BSE 30-share barometer ended lower by 185.76 points, or 0.92 per cent, at 19983.13, its lowest close since September 29, when the index had settled at 19956.24. Since then, it had been closing in the 20000-plus range. The National Stock Exchange's 50-share Nifty index also finished the day lower by 0.80 per cent at 6027.30. The market opened with smart gains, but pared all gains in the last hour of the trading session. The Sensex fluctuated between 20332 and 19923 throughout the day.

Metal was another sector that saw selling pressure. Tata Steel plunged 2 per cent to Rs.633, Hindalco 2.23 per cent to Rs.206.45, Jindal Steel 0.49 per cent to Rs.707.30 and Sterlite 0.03 per cent to Rs.176.50.

Rupee ends steady

In volatile trading, hefty foreign fund flows into equity markets kept the rupee nearly stable to close at 44.35/36 against the U.S. currency despite sharp fall in domestic equities.

The rupee opened lower at 44.42/43 from Monday's close of 44.36/37. Later, it dropped further to the day's low of 44.55 on good dollar demand from importers as well as initial weakness in local equities. — PTI

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