The S&P Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) closed to its lowest in four months following political uncertainty at the Centre. The Sensex closed at 18735.60 with a loss of 57.27 points or 0.30 per cent. Consumer durable stocks dragged down the index with a loss of 2.06 per cent followed by realty (1.31 per cent) and information technology stocks at 0.82 per cent. All sectoral indices ended in the red except capital goods, metal and power — which gained marginally.
The 50-share National Stock Exchange index, Nifty, closed down by 7.40 points to end at 5651.35.
Among other broader indices, the BSE 100 lost 0.18 per cent, BSE 200 was down by 0.19 per cent and the BSE 500 closed down by 0.24 per cent.
Funds from foreign institutional investors (FIIs) have slowed down this month with developments in Cyprus affecting sentiments. While political uncertainty clouded the market horizon, the RBI had also said that “the headroom for further monetary easing remains quite limited.” “We think it’s premature to conclude that the reform momentum will come to a complete standstill,” said Manishi Raychaudhuri, Asia Pacific Strategist, BNP Paribas. “But there are a few indicators that we would watch carefully. First, whether the regular 1-1.5 per cent monthly increase in diesel prices continues or not. . Fiscal consolidation and accelerating foreign investment – two key policy reform areas – appear most at risk,” Manishi Raychaudhuri added.
Meanwhile the rupee closed at 54.33/34 per dollar on Friday compared to 54.27/28 on the previous trading day.