Financial Daily from THE HINDU group of publications
Wednesday, Oct 19, 2005


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Home Page - Forex
Markets - Stock Markets


Weak rupee drags down stock market — Sensex slips 80 in volatile trading

Our Bureau

Mumbai , Oct. 18

STOCK prices were down sharply after a highly volatile trading session on Tuesday on worries of rupee depreciation and selling of shares by foreign investors.

The equity market opened firm with the BSE Sensex moving up by more than 100 points in the first 30 minutes of trading, but the falling rupee pulled down most of the gains.

The rupee closed at an 11-month low of 45.16.

After breaching the psychological level of 45 on Monday, the domestic currency continued to decline on Tuesday. It touched an 11-month low against the dollar to end at 45.16/17 — almost 30 paise lower than Monday's close of 44.87/88.

The rupee opened lower at 44.94/96 and touched an intra-day low of 45.22/23. This level was last seen in November 2004, said dealers.

The rupee's decline was attributed to the outflow of FII funds and the strengthening of the dollar against other currencies. The dollar also touched a two-year high against the yen. The yen crossed the 115 levels and touched a low of 115.90 against the dollar.

Major selling on the bourses came in the last 45 minutes of trading, and this created panic in the market. At close, the BSE Sensex was down 80.37 points (0.98 per cent) at 8122.25.

The NSE's S&P CNX Nifty was down 16.95 points (0.68 per cent) to close at 2,464.20.

Brokers said selling in the market on Tuesday was from hedge funds as they have started withdrawing funds from across the Asian markets. This is due to the firming of the dollar against various international currencies.

In the domestic market, the FIIs continued to remain net sellers this week too. On Monday, they were net sellers to the tune of Rs 299.10 crore in equity. However, mutual funds inflows continued to remain positive, and they bought equity valued at Rs 237.41 crore on Monday.

The major losers in the Sensex stocks include Ranbaxy Laboratories, Satyam Computers, Dr Reddy's Laboratories and Tata Steel.

Brokers said the next level for the Sensex on the lower side would be 8,050, and if it falls below this level, the index can fall below 8,000.

At close, the overall mood of the market remained pessimistic and dealers expect more selling in the next few days.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Tata Safari Dicor

Stories in this Section
Gloomy global weather buoys coffee prices


TCS bags BPO deal from UK insurer
Max Telecom exits Hutchison Essar — Divests 3.16-pc stake in Rs 657-cr deal
Weak rupee drags down stock market — Sensex slips 80 in volatile trading
Microsoft launches easier licensing programme for small customers
Deutsche Bank re-enters retail
Will cashback bait make cardholders spend more?
Kingfisher likely to pick up stake in Air Sahara: Mallya
BK Modi group co buys out Distacom stake in Spice Tele
Regulators may have say on more independent directors — Company Law to set minimum number
South accounts for 62 pc of software, services export


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line