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Nifty sheds 20 points as rupee hits 60 vs dollar

Last Updated: Wednesday, June 26, 2013 - 21:27

Mumbai: The benchmark CNX Nifty lost 20 points and slipped below the 5,600-mark on NSE as the sharp slide in rupee, which breached the 60-mark against dollar, and investor cautiousness ahead of the F&O expiry dominated market sentiments Wednesday.

The market turned highly volatile in afternoon after the rupee touched a new low and fell below the 60-mark against the US unit, fuelling near-term risk to inflation and concerns about capital outflows.

Financial, auto, healthcare, metal and infra stocks bore the brunt of selling, while technology, FMCG and energy counters attracted huge buying interest.

The 50-share Nifty swung between a high of 5,635.25 and a low of 5,579.35 before closing at 5,588.70, a fall of 20.40 points, or 0.36 percent, over its previous close.

US Federal Reserve's decision to scale back its stimulus measures and a possible credit crisis in China further dented investor confidence.

The market got off to a good start following low-level buying amid short-covering and overnight rally in US markets.

The key index soon gave away most its initial gains and traded in a tight range with a positive bias in the absence of follow-up buying support.

It lost ground in late afternoon and succumbed to intense selling after the rupee slumped to fresh lows.

The rupee slide is likely to trigger more capital outflows and add to inflationary pressure, thereby preventing the RBI from cutting interest rates, traders commented.

Elsewhere in Asia, stocks ended mixed amid growing concerns over looming credit crunch for Chinese banks despite reassurance from the People's Bank of China (PBOC).

Among the major losers, Bharti Airtel plunged by 5.96 percent, M&M 4.77, Kotak Bank 4.18 percent, Ranbaxy 3.57 percent and IndusInd Bank fell by 3.50 cent. The key gainers included TCS, Hero Motocorp, Asian Paint, Power Grid, HCL Tech, GAIL, NTPC, Axis Bank, DLF and BPCL.

Turnover in the cash segment slumped to Rs 9,903.53 crore from Rs 11,683.64 crore yesterday. A total of 5,713.38 lakh shares changed hands in 60,94,831 trades. The market capitalisation stood at Rs 60,14,857 crore.


First Published: Wednesday, June 26, 2013 - 21:27
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