Due to heavy profit booking for the third consecutive session, the benchmark Sensex fell by 165.42 points to 22,466.19 as selling pressure was seen across all sectors on Tuesday. Even fresh buying by foreign institutional investors (FII) was not able to help improve the market sentiment as investors turn cautious.
As per market experts, the overall sentiment was also influenced by the two-day monetary policy meet of the US Federal Reserve where in, they might decide to further reduce the monthly bond buying plan by another $10 billion. Stock brokers further added cautious investors are now waiting for the outcome of the lok Sabha elections and they hope a new stable government will take initiatives on reform measures.
Despite the weak performance from the equity markets, the rupee appreciated by 23 paise to close the day at Rs 60.42 per dollar. As per forex experts, the domestic currency rose on back of heavy selling of dollar by banks and exporters. The dollar index, a barometer of six major global rivals, was down by 0.06 per cent and added support to rupee.On equity markets, the broader index, Nifty also fell by 46 points to 6,715.25. In straight three sessions, Sensex has plunged by 410.35 points or 1.79 per cent.
In across-the-board profit taking, 11 out of 12 sectoral indices closed in the red as on consumer durable index managing to end the session with marginal gains of 0.18 per cent.