BSE Sensex falls 77 pts as Indian rupee plunges to all-time low, Bharti Airtel shares hit

Jun 26 2013, 19:40 IST
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BSE Sensex provisionally fell 0.6 percent, while the 50-share Nifty ended down 0.5 percent. (Reuters) BSE Sensex provisionally fell 0.6 percent, while the 50-share Nifty ended down 0.5 percent. (Reuters)
SummaryBSE Sensex' fall led by bluechips Bharti Airtel and Mahindra and Mahindra shares.

Stock markets today mirrored the slide in the Indian rupee with BSE Sensex surrendering gains in last hour of trade to end 77 points down at 18,552.12 as the currency breaching the 60-mark against dollar renewed concerns over FII outflows. Bharti Airtel shares plunged on penalty imposed on company.

With rupee hitting lifetime low of 60.62 in late afternoon deals, domestic stocks led by auto, metal, consumer durables and banks were rattled, despite firm European cues.

* BSE Sensex

* NSE Nifty

The Bombay Stock Exchange 30-share barometer resumed higher and moved in a narrow range till late afternoon before succumbing to sell-off at the fag-end to settle at 18,552.12, a fall of 77.03 points or 0.41 per cent.

Out of the 30-scrip Sensex, 18 ended lower led by Bharti Airtel falling 5.74 per cent on Rs 650-crore fine for allegedly violating roaming norms. Mahindra and Mahindra closed down by 4.63 per cent.

Bucking the general weak tend, stocks of software exporters ended with gains on hopes of better earnings on account of a strong dollar. TCS rose 2.84 per cent, Wipro gained nearly 1 per cent and Infosys rose 0.8 per cent.

The broader 50-issue CNX Nifty of the NSE also dropped by 20.40 points, or 0.36 per cent, to end below the key 5600-mark at 5,588.70. Similarly, SX40 index, the flagship index of MCX-SX, closed 49.23 points, or 0.44 percent down at 11048.71.

Traders were also cautious ahead of expiry of derivatives contract tomorrow. Heavy continued capital outflows in last few days has kept markets under pressure with FIIs pulling out over USD 6 billion from stocks and debt in June so far.

"The strong rise in USD/INR rates caused trouble for equity markets. Concerns over FII outflows have increased," said Nagji K Rita, CMD, Inventure Growth & Securities.

Rupee, which was trading in 59.8 levels till 1400 hours, was hit hard by dollar demand and slumped to record low.

The market was under pressure since June 20 when the US Federal Reserve said it may taper of QE3, believing that the economy is on a sound growth footing.

Globally, Asian stocks closed mixed while European indices were last trading with gains.

Key benchmark indices in Hong Kong, Singapore, South Korea and Taiwan closed up while China and Japan ended down. In Europe, France's CAC was up by 1.44 per cent, Germany's DAX by 1.26

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