Sensex extends losses, mixed trend in Asian markets

MUMBAI: Extending the losses to the second day in succession, the Bombay Stock Exchange sensitive index dropped over 240 points on Tuesday to close at nearly two-week low amid mixed trends in the Asian markets.

IT major Satyam Computer nosedived by 13.55 per cent as rumours of its chairman Ramalinga Raju’s resignation flew thick and fast, even as the World Bank barred the company from doing business with it for eight years.

Realty stocks which have been on a gaining spree last week took a hit and their sectoral index closed lower by 4.84 per cent amid banks cutting lending rates and anticipation of a fresh reduction in key policy rates in the second stimulus package to boost the economy.

The 30-share index closed at 9686.75, a fall of 241.60 points or 2.43 per cent against 9928.35 on Monday. In two days, the Sensex had lost over 400 points.

Asian markets, however, exhibited a weak trend with their indices falling by about 1.21 per cent to 4.55 per cent. The Japanese market remained closed today. Brokers said the expiry of derivatives December contract on Wednesday failed to trigger any short covering as investors remained cautious and awaited announcement of the second stimulus package and further rate cut by the Reserve Bank of India.

Rupee tumbles 74 paise

Sustained demand for the dollar weakened the rupee by 74 paise on Tuesday amid weak stock markets and lower crude oil prices. The rupee came under pressure and closed at 48.76/78 a dollar against 48.02/03 on Monday with oil refiners stepping up their purchases for their monthly import bill. — PTI

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