Sensex’s five day rising spree finally came to an end on Monday as the benchmark index fell due to heavy profit booking. Sensex slipped by 264.57 points to 20,974.79.
As per market experts, the indices fell from their all-time high closing as investors booked profits after Sensex rose by 669 points in the last five session. Sensex registered the biggest fall since September 30 when it crashed by 347.50 points.
Just like Sensex, the broader index Nifty also fell by 64.20 points to 6,253.15 as 32 stocks out of the 50 shares comprising the index closed under pressure. Of the 30 shares present in Sensex, 22 shares fell while on eight stocks managed to end the session in green.
As far as sectoral indices are concerned, FMCG index fell the most by 2.53 percent followed by healthcare index which slipped by 1.55 per cent. Both, information technology and technology indices closed under pressure after losing nearly 1.25 per cent each. Even foreign institutional investors were seen booking profit after which their net investment stood at a mere Rs 227.40 crore.
Markets also came under pressure after India’s services sector data continued to stay below the index value of 50 HSBC/Markit purchasing managers index indicating contraction amid economic uncertainty. However, services sector data did improve to 47.1 in October from its four and a half year’s low of 44.6 during September.
While the stock markets crumbled, Rupee rose by 12 paise to Rs 61.62 per dollar. As per forex analysts, the domestic currency gained on back of foreign banks and FIIs booked heavy profits and converted it back to the US currency.
They further added that the domestic currency was also supported by the expectations of an increase in foreign inflows from international telecom companies who plan to raise their stakes in respective Indian subsidiaries. Dollar selling by banks and exports also supported the domestic currency and helped in snapping its two day fall.
The rupee rebounded after edging close to the 62 level against the dollar and ended with a 12 paise gain at 61.62 today as banks and exporters sold the US currency on expectations of continued capital inflows.
The rupee resumed at 61.95 per dollar from the previous close of 61.74 at the interbank foreign exchange market on initial dollar demand from banks and importers.
The local currency recovered to 61.6150 on fag-end dollar sales by banks and exporters before ending at 61.62, a gain of 12 paise, or 0.19 per cent, snapping two days of losses.
“The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, is trading range bound but is slightly on the weaker side, which helped the rupee to trade strong,” said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). “local equities traded weak and closed down by over 1 per cent, which capped the rupee’s gains.”