Stock indices dipped on Thursday as the 30-share S&P BSE Sensex lost more than 200 points, even though foreign institutional investors (FIIs) were net buyers.
The rupee also weakened in a highly volatile trading.
The rupee closed at 63.50 a dollar compared to its previous close of 63.38.
It moved in a range of 62.92-63.95.
“After five straight days of gains, the rupee showed weakness today [Thursday]. Despite appreciating to below 63 in early trading, the rupee has weakened and is trending between 63 and 64,” said Raghu Kumar, co-founder RKSV, a leading broking firm.
The markets should see a somewhat range-bound rupee until the Federal Open Market Committee (FOMC) meets next week to discuss whether it should scale down its bond buying program, said Mr. Kumar, adding, if the Federal Reserve does decide to taper down the stimulus program, “we could see a sharp depreciation in the rupee.”
The S&P BSE sensex lost 215.57 points to close at 19781.88 with metal stocks losing the most at 2.53 per cent followed by banks (1.86 per cent), consumer durables (1.84 per cent), automobiles (1.80 per cent) oil & gas (1.68 per cent) and PSUs (1.58 per cent). Except realty stocks, which gained marginally by 0.54 per cent and fast moving consumer goods at 0.32 per cent, all other sectoral indices ended in the red. On the National Stock Exchange, the 50-share Nifty closed at 5850.70 with a loss of 62.45 points.
“Although global cues were mixed, Indian equities started the day on a weak note. Selling pressure intensified as the day progressed,” said Sanjeev Zarbade, Vice-President-Private Client Group Research, Kotak Securities.
