Mumbai: The benchmark Sensex extended losses for the sixth straight day and fell 209 points to a one-month low Tuesday as the rupee continued to drop against the dollar before the release of industrial production and consumer inflation data.
Tata Motors, ICICI Bank and Reliance Industries were the biggest drag as 26 of the 30 shares on the index fell. Sesa Sterlite and Tata Power were among the big losers.
Metal, power and auto sector stocks led 12 of the 13 BSE group indices lower.
The 30-share Sensex resumed higher at 20,510.31 and moved in a range of 20,262.22 to 20,584.22 before ending at 20,281.91, a loss of 209.05 points or 1.02 percent.
The index has dropped 957.45 points, or 4.51 percent, since its peak closing of 21,239.36 in a special muhurat session on November 3.
The Sensex was at the lowest level since closing at 20,272.91 on October 10. It was the longest losing streak for the index since the eight days ended August 2.
The 50-share CNX Nifty on the National Stock Exchange dipped 60.75 points, or 1 percent, to a one-month low of 6,018.05. The SX40 on the MCX Stock Exchange ended 93.76 points lower at 12,086.48.
The rupee, which fell for the fourth session yesterday, dropped further and approached the 64 level. The currency's slide against the dollar lowers the value of investments by foreign institutions in stocks and bonds, said analysts.
A lower rupee also increases the import bill and could fuel inflation. The rupee touched a two-month low of 63.83 per dollar and was quoted at 63.78 at 1530 hrs.
"We are also awaiting IIP and CPI numbers which the market feels will put a damper on the mood," said Shrinivas Viswanath, cofounder of RKSV.
Car sales, considered by investors as a signal of consumer sentiment, provided little cheer with domestic sales declining 3.88 percent in October, according to the Society of Indian Automobile Manufacturers.
Foreign institutional investors bought shares worth a net Rs 333.50 crore yesterday, according to provisional data from the stock exchanges.
"Continuing concerns over the Fed taper, rupee depreciation, high bond yields and expectations of a sustained high CPI inflation number were the reasons for the fall. FII purchases in the cash market have tapered over the past few sessions," said Dipen Shah, Head of Private Client Group Research at Kotak Securities.
In the Asian stock markets, key indices in China, Japan, Taiwan and South Korea rose, while they fell in Singapore and Hong Kong. In Europe, indices in France, Germany and London declined marginally.
The Dow Jones Industrial Average extended its record rise yesterday ahead of retailer earnings reports, which may provide an indication of consumer strength and the possibility of the US Federal Reserve tapering the stimulus programme.
In the domestic marker, the Sensex losers were led by Tata Motors (-4.53 percent), Sesa Sterlite (-3.35 percent), Tata Power (-2.70 percent), ICICI Bank (-2.43 percent) and Tata Steel (-2.15 percent).
Gainers on the index included ITC, which advanced 0.87 percent and Mahindra & Mahindra, up 0.71 percent.
Among the S&P BSE sectoral indices, metal dipped 1.8 percent, power 1.75 percent, auto 1.62 percent, Bankex 1.62 percent and capital goods 1.53 percent.
The market breadth remained negative with 1,483 stocks losing ground and 982 ending with gains. Total turnover was higher at Rs 1,969.70 crore from Rs 1,897.72 crore yesterday.
First Published: Tuesday, November 12, 2013, 16:07