Heavy selling in the last hour of trading dragged the benchmark Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) below the 29000-mark. The Sensex closed at 28799.69 with a loss of 244.75 or 0.84 per cent. It touched a high of 29094.61 in early trades but witnessed a low of 28721.63.
Among the broader indices, BSE 100 dipped by 0.86 per cent and BSE 200 lost 0.81 per cent. Meanwhile mid-cap stocks lost 0.51 per cent and small-cap ended down with a loss of 0.34 per cent.
“Markets fell sharply in the last hour on the back of heavy off-loading seen in banking stocks,” said Amar Ambani, Head of Research, India Infoline (IIFL). The Government reported a fall in the wholesale Price Index (WPI)-based inflation for the fifth straight month in March 2015.
“Post WPI numbers, the market staged a steady recovery. However it took a sudden U-turn, as private banking shares in particular came under heavy selling pressure in the last one hour of trade,” said Mr. Ambani.
On the National Stock Exchange (NSE), the 50-share Nifty closed at 8750.20 with a loss of 83.80 points or 0.95 per cent.
“Going ahead we expect 8700-mark to act as a strong support for the Nifty. Also results season which will kick off in the coming week will provide direction,” Mr. Ambani added. A report from IIFL stated that “while key drivers of inflation continue to remain benign, the looming threat of El Nino will influence the near-term trajectory of inflation as well as monetary policy.”
Rupee up 15 paise
The rupee snapped its two-day losing streak against the American currency, firming up by 15 paise to close at 62.36 a dollar on fresh selling by banks and exporters on the back of lower dollar in the overseas markets.
The rupee opened sharply higher at 62.38 against the last closing level of 62.51 at the inter-bank foreign exchange market and firmed up further to close at 62.36, showing a gain of 15 paise or 0.24 per cent from its Monday’s close. The domestic currency had dropped by 27 paise or 0.43 per cent in the previous two trading sessions
