Mumbai: The BSE Sensex snapped a four-day rally on Thursday and shed 85 points, as funds booked profits in heavy-weight stocks led by software counters on concerns that a stronger rupee will hurt their revenues, coupled with weak global sentiment.
The Sensex, which had been on an onward march since the past four sessions gaining over 1.35 percent, fell by 85.41 points to 17,615.72. The bellwether index touched a low of 17,566.54 and a high of 17,733.34 during the day.
The rupee surged to an over 15-month high on Thursday buoyed by a weakening dollar against all leading currencies backed by large dollar sales by foreign banks, but buying by importers and a weak share market prevented a sharper rise.
The rupee woes pulled down the BSE IT Index by 2.22 percent. This is the second straight fall for the IT counters. The domestic software companies get over 50 percent of their revenues from the US.
However, a surge in the refinery stocks led by the market leader Reliance Industries and Aban Offshore saved the markets from a major fall.
The broader NSE Nifty 50 also followed suit shedding 18.70 points to 5,263.10, after dipping to a low of 5,244.75.
Among the Sensex counters, 18 declined while 12 ended in the positive zone as IT, auto, and healthcare counters were on weak wicket on profit selling by funds.
TCS declined the most and to the lowest level in three weeks, while Infosys, dropped the most in over a month after the rupee gained for a fourth day. TCS fell by 2.61 percent to Rs 714.65, Infosys 2.30 percent to Rs 2,525.25, and Wipro 2.25 percent to Rs 677.55.
A steep rise in refiner stocks bucked the falling trend and recorded handsome gains. Reliance Industries, the heaviest Sensex scrip, shot up by Rs 16.40 to Rs 1,105.20 and Aban Offshore by Rs 100.15 to Rs 1,443.90.
Among the sectoral indices, oil and gas index gained the most by rising 1.24 per cent to 10,732.51 followed by consumer durable index by 1.11 percent to 3,940.71. Metal index gained 0.07 percent to 18,222.87.
In the metal segment, Hindalco rose 2.40 percent to Rs 175 as aluminum jumped on expectations bad weather in China may curb outputs. Sterlite added 0.25 percent to Rs 915.95 after copper futures in Shanghai climbed to the highest level in almost 18 months on speculation that demand might increase as the global economy recovers.
On the other hand, IT, auto, healthcare and realty counters fell in the range of 2.22 to 1 percent.
With the diversion in the market sentiment, Mid-cap index fell by 0.02 percent to 6,944.62 while Small-cap index rose by 0.67 per cent to 8,659.76.