Indian stocks slumped as much as 1.5 per cent on Thursday as traders booked profits after five days of strong rally sent the BSE Sensex and the broader Nifty up by over 10 per cent.
The rupee also fell after five days of gains, even as the Reserve Bank of India (RBI) likely sold dollars via state-run banks starting at around 63.95 levels to prevent further weakness in the currency. The Sensex closed off the day's low 19,782, down 216 points, whiel the Nifty fell 62 points to end at 5,851. The rupee traded at 63.62 per dollar, down 0.4 per cent from Wednesday's close of 63.38 as of 3.45 p.m..
Caution prevailed ahead of factory output and CPI data, scheduled for release later in the day even as foreign institutional investors remained net buyers of shares, bringing their total to nearly Rs. 5,780 crore over the previous five sessions.
Banking stocks, which have been the main drivers of the rally, came under sharp selling pressure. The Bank Nifty fell 2 per cent, but closed above the key 10,000 levels. Among private banks, IndusInd Bank plunged 5.4 per cent, while Kotak Mahindra Bank declined 2 per cent. ICICI Bank and HDFC Bank slipped around 2 per cent.
Jaiprakash Associates crashed 11.6 per cent after earlier rising as much as 2.1 per cent on profit-taking after announcing a cement unit sale to UltraTech Cement on Wednesday.
Rupee key to markets:
The rupee started higher today and gained as much as 62.92 per dollar, its highest since August 19. However, the partially convertible rupee could not sustain the momentum and closed at 63.50 as against Wednesday's close of 63.38 per dollar.
The rupee has recovered 5.8 per cent over the last five sessions, its longest winning streak in a year, since Raghuram Rajan took over as the central bank chief on September 4 and unveiled a raft of steps including allowing banks to borrow more overseas and offering a concessional swap facility to banks to raise deposits from overseas Indians.
Avinnash Gorakssakar, head (research) at miintdirect.com told NDTV that for now the scare that the rupee may hit 71-72 per dollar might not materialise.
"August trade data has given hopes that exports are picking up. That will help in curtailing the current account deficit and will be positive for the rupee," he added.
Global cues:
Markets are now waiting for the Federal Open Market Committee meets next Tuesday and Wednesday. While the Fed is widely expected to begin scaling back its $85 billion monthly asset-buying programme, last week's disappointing jobs data prompted many to believe the reduction will be more modest than some had previously expected.
The rupee also fell after five days of gains, even as the Reserve Bank of India (RBI) likely sold dollars via state-run banks starting at around 63.95 levels to prevent further weakness in the currency. The Sensex closed off the day's low 19,782, down 216 points, whiel the Nifty fell 62 points to end at 5,851. The rupee traded at 63.62 per dollar, down 0.4 per cent from Wednesday's close of 63.38 as of 3.45 p.m..
Caution prevailed ahead of factory output and CPI data, scheduled for release later in the day even as foreign institutional investors remained net buyers of shares, bringing their total to nearly Rs. 5,780 crore over the previous five sessions.
Banking stocks, which have been the main drivers of the rally, came under sharp selling pressure. The Bank Nifty fell 2 per cent, but closed above the key 10,000 levels. Among private banks, IndusInd Bank plunged 5.4 per cent, while Kotak Mahindra Bank declined 2 per cent. ICICI Bank and HDFC Bank slipped around 2 per cent.
Jaiprakash Associates crashed 11.6 per cent after earlier rising as much as 2.1 per cent on profit-taking after announcing a cement unit sale to UltraTech Cement on Wednesday.
Rupee key to markets:
The rupee started higher today and gained as much as 62.92 per dollar, its highest since August 19. However, the partially convertible rupee could not sustain the momentum and closed at 63.50 as against Wednesday's close of 63.38 per dollar.
The rupee has recovered 5.8 per cent over the last five sessions, its longest winning streak in a year, since Raghuram Rajan took over as the central bank chief on September 4 and unveiled a raft of steps including allowing banks to borrow more overseas and offering a concessional swap facility to banks to raise deposits from overseas Indians.
Avinnash Gorakssakar, head (research) at miintdirect.com told NDTV that for now the scare that the rupee may hit 71-72 per dollar might not materialise.
"August trade data has given hopes that exports are picking up. That will help in curtailing the current account deficit and will be positive for the rupee," he added.
Global cues:
Markets are now waiting for the Federal Open Market Committee meets next Tuesday and Wednesday. While the Fed is widely expected to begin scaling back its $85 billion monthly asset-buying programme, last week's disappointing jobs data prompted many to believe the reduction will be more modest than some had previously expected.
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