Sensex Fails To Maintain Momentum; Rupee At 63.65 Against U.S. Dollar

MUMBAI: The benchmark BSE Sensex dropped 98 points in the late morning trade due to fresh selling, mainly at metal, power, and refinery, banking, healthcare and FMCG counters following overnight losses in the U.S. market.

The Sensex resumed higher at 27,885.36 and firmed up further to 27,911.44 on initial buying on the back of good foreign capital inflows.

However, it declined immediately to 27,721.11 before quoting at 27,739.66 at 1045 hours, a loss of 97.55 points, or 0.35 per cent, from its last close.

The CNX 50-share Nifty also fell 27.75 points, or 0.33 per cent, to 8,395.50 at 1045 hours.

Major losers were Tata Steel (5.33 per cent), Vedanta (3 per cent), Cipla (1.59 per cent), Hindalco (1.26 per cent), Tata Power (1.23 per cent), ITC (1.13 per cent), BHEL (1.04 per cent) and NTPC (1.03 per cent).

However, Coal India rose 3.10 per cent followed by Tata Motors 0.93 per cent, Axis Bank 0.82 per cent and L&T 0.56 per cent.

Foreign portfolio investors bought shares worth a net Rs.123.49 crore yesterday and domestic institutional investors (DIIs) purchased shares worth a net Rs.103.58 crore.

In the overseas market, Asian stocks were trading mixed. U.S. stocks ended slightly lower yesterday after the minutes from last month’s Federal Reserve meeting showed officials were unlikely to raise interest rates in June amid a slowdown in economic growth.

Key benchmark indices in Hong Kong, Singapore, South Korea and Taiwan were down 0.04 per cent to 1.08 per cent while China and Japan were up by 0.02 per cent to 1.12 per cent.

The rupee strengthened 17 paise to 63.65 against the dollar in early trade at the Interbank Foreign Exchange today on fresh selling of the U.S. currency by exporters and banks amid a higher opening in the equity market.

Forex dealers said besides selling of the American currency by exporters and banks, the dollar’s weakness against other currencies overseas supported the rupee.

The domestic currency had lost 15 paise to close at 63.82 against the dollar in yesterday’s trade on fresh demand for the greenback from importers amid a firm American currency in the overseas market.

Meanwhile, the benchmark BSE Sensex rose 61.21 points, or 0.21 per cent, to 27,898.42 in early trade today.