News Column

Sensex slips, rupee steady

June 25, 2014


Mumbai: Retreating from one-week highs, the benchmark Sensex yesterday closed about 55 points down at 25,313.74 on weak global cues due to deepening Iraq crisis and caution ahead of the expiry of June derivative contracts.

Persisting concern over below-average monsoon and the likely effect on food-grain prices also kept investors in a jittery mood, said equity dealers.

Shares from refinery, capital goods, banking and FMCG segments were in demand while from auto, pharma, realty and consumer durables attracted profit-booking.

Gains were noticed in Sensex-based counters like SBI, Maruti Suzuki, Bajaj Auto, M&M, Tata Motors, Hero MotoCorp, HUL and GAIL. However, fall in heavyweights like ITC, ICICI Bank, RIL, ONGC, L&T and HDFC Bank, dragged down Sensex lower.

Jignesh Chaudhary, head of research at Veracity Broking Services said: "Local equities opened positively, but as day progressed indices lost its way and closed weak. Today profit-booking was seen. Investors preferred to stay cautious ahead of the expiry of June derivatives lined up for today."

The BSE 30-share barometer resumed better and initially touched a high of 25,427.80. Later, it fell back and was trapped in a narrow range for sometime. It finally ended at 25,313.74, a net fall of 55.16 points or 0.22 per cent.

On Tuesday, it had spurted by 337.58 points, or 1.35 per cent, to end one-week high on easing global crude oil prices.

The wide-based 50-issue CNX Nifty of the NSE also eased by 10.95 points, or 0.14 per cent, to end at 7,569.25. Automobile stocks caught buyers' fancy at the fag-end after government extended excise duty concessions by 6 months.

Rebels launched a dawn raid yesterday on a key Iraqi oil refinery they have been trying to take for days but were repelled by security forces. US benchmark West Texas Intermediate rose 17 cents to $106.20 a barrel while Brent crude eased 65 cents to $113.81.

Asian stocks closed lower due t escalating violence in Iraq.

Currency stable

The rupee yesterday reversed early losses and ended up one paisa higher at 60.12 against the United States dollar as sales of the American currency by exporters, including IT firms, helped the local unit bounce back from one-week lows.

At the Interbank Foreign Exchange (Forex) market, the local currency resumed lower at 60.23 a dollar from previous close of 60.13. It then declined further to one-week lows of 60.3850 on initial dollar demand from importers, mainly oil refiners.

Lacklustre trade on the local equity markets also weighed on the rupee. The rupee later bounced back to settle at the day's high of 60.12 on late dollar selling by exporters.

Anindya Banerjee, currency analyst, Kotak Securities, said: "The Indian rupee weakened at the open due to uptick in global petroleum prices. However, hedging demand from IT sector, pushed it back up towards 60.17/18 levels on spot. PSU bids were absent in today's session and there was little inter-market effect.

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Source: Times of Oman

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