The Bombay Stock Exchange benchmark index, Sensex, fell by nearly 143 points on heavy selling in private banks.
After gaining 208 points on Thursday on rate cut hopes, the 30-share index resumed stable. Soon it moved up to a high of 19673.16 but started losing momentum after banking shares crumbled under heavy selling. It finally ended at 19427.56, a fall of 142.88 points. On similar lines, the 50-issue National Stock Exchange Nifty index dipped by 36.35 points to end at 5872.60.
While Asian stocks were mixed, a lower opening in Europe as eurozone leaders eased constraints on national budgets amid a deepening recession, further influenced the Indian markets.
Rupee shoots up
The rupee strengthened by 34 paise to end at two-week high of 54.01 against the dollar on robust capital inflows linked to Nalco’s offer-for-sale.
At the interbank foreign exchange market, the rupee resumed strong at 54.15 a dollar from the previous close of 54.35 and moved in a range of 53.97 and 54.21. It finally ended at 54.01.
Banks and exporters preferred to reduce their dollar position at the current stage in view of sustained capital inflows coupled with weakness in dollar overseas, forex dealers said.