Sensex declines for third day, down 56 points as HUL falls
Mumbai: The BSE benchmark Sensex on Friday slid for the third straight day by losing 56 points to a fresh two-week low 19,748.19 on selling in HUL and Tata Motors shares, amid nervousness in rate-sensitive sectors ahead of the RBI credit policy review next week.
The Sensex, which had lost 498 points in past two days, declined further by 56.57 points, or 0.29 percent, to 19,748.19 -- the lowest close since 19,676.06 on July 11.
Brokers said investors refrained from creating major positions before RBI credit policy scheduled on July 30.
They also said market participants feared that the RBI's recent liquidity tightening measures to curb weakening rupee might hurt economic growth prospects in the short-term.
Pressure was more confined to banking and interest-sensitive stocks, besides metal and PSU shares.
The broad-based National Stock Exchange index Nifty dipped below another crucial level of 5,900 this week by losing 21.30 points, or 0.36 percent to 5,886.20. Also, SX40 index, the flagship index of MCX-SX, fell by 37.91 points, or 0.32 percent, to end at 11,791.25.
State Bank of India, the country's biggest lender, dropped by 1.93 percent, ICICI Bank by 0.32 percent and HDFC Bank by 1.45 percent, Others like Yes Bank and Axis Bank also ended lower.
Hindustan Unilever, an Indian unit of the world?s second-biggest consumer-goods company, plunged by 3.38 percent after lower quarter earnings, said analysts.
Hindalco (7.59 percent), Tata Motors (3.34 percent) TCS (1.17 percent) were among notable Sensex losers.
The metal sector index suffered the most by losing 3.52 percent, followed by realty sector index (1.59 percent), Public Sector Undertaking sector index (1.50 percent) and Banking index (1.43 percent) fared badly.