Stock indices dipped further on worrying corporate earnings as a result of fall in value of rupee as well as the news of cap on oil and gas prices which would affect index heavy weights such as Reliance Industries.
The Bombay Stock Exchange 30-share sensitive index, Sensex, lost 145.36 points to close at 19294.12.
Expectedly, the fall was led by oil & gas stocks which lost 1.82 per cent followed by automobiles 1.50 per cent, realty 1.32 per cent and PSUs 1.02 per cent. Except consumer durables, which gained 1.95 per cent, information technology 0.66 per cent, technology 0.27 per cent and healthcare 0.11 per cent, all other sectoral indices ended in the red.
“The market fell after the news that the government would cap oil and gas pricing,,” said Deven Choksey of K. R. Choksey Shares and Securities.
“In stocks, the momentum is still down as there is no positive action from foreign institutional investors (FIIs),” said Sonam Udasi, Research Head, IDBI Capital.
On the National Stock Exchange (NSE), the Nifty closed at 5816.70 with a loss of 42.30 points.
Meanwhile, the rupee gained by 49 paise to close at 59.64/65 a dollar against the previous close of 60.13/ 14.
“Neither can imports come down nor exports rise in the near future. So we have to depend on capital inflows to bring down the current account deficit but capital inflows to the country will take place only when the growth returns to the economy — we are now in a vicious circle,” said Mr. Choksey.