Sensex lost two days rally and closed 0.75 per cent down at 19,294.12 while Nifty lost over 42 points and finally closed at 5,816.7. Markets saw pressure in the second half of the session when investors tried to book whatever little profit they had made. Weak export and import numbers from China addd to the markets pressure.
Nifty losers were lead by Hindalco, BPCl and Bank of Baroda which fell over 3 per cent followed by M&M which lost 2.79 per cent. European markets, after a strong opening also saw selling, pressure which further had an impact on the Indian markets. While Rupee saw a strong recovery from its day low of 60.21 per dollar and finally closed at 59.66 per dollar. Rupee recovered after the recent steps taken by the RBI and SEBI. Experts also believe that a large PSU bank has been buying dollar through the session to counter the selling coming from foreign banks.
Investors also stayed away from the market as they continued with a cautious approach as the quarter first result season is about to begin and also government will announce import- export numbers on Friday. Refinery stocks also traded under pressure as the RBI asked state-run oil companies to purchase dollars from a single bank to avoid unwanted volatilities in the rupee.