Markets provisionally fall 1.3%; RIL drops
Mumbai: Shares provisionally fell 1.3% on Thursday as concerns about growth prospects deepened on the back of a weakening rupee, while Europe’s debt crisis continued to build worries. Energy major Reliance Industries along with private-sector lenders ICICI Bank and HDFC Bank led the losses.
The main 30-share BSE index provisionally closed down 208.83 points at 15,519.02, with 20 of its components closing in the red. The 50-share NSE index provisionally closed 1.27% lower at 4,646.25.
Rupee weak on local equities, importer demand
The rupee stayed weak on Thursday due to a sluggish local share market along with subdued global risk appetite ahead of an Italian debt auction, a key event which is expected to give cues on Europe’s economic outlook.Dollar demand from oil importers for month-end payments and on account of defence payments kept the selling pressure on rupee, traders said.
However, a big slide in the rupee was unlikely as the Reserve Bank of India is likely to step in and keep the local unit’s fall under check by selling dollars, they said. The Reserve Bank of India is suspected to have intervened in the foreign exchange market on Wednesday helping rupee recover some losses.
At 2:37 pm, the rupee was at 53.33/34 to the dollar, weaker than Wednesday’s close of 53.07/08, and the unit is likely to stay in range of 53.25 to 53.50 in rest of the session.
India’s benchmark share index was down 0.4% while the euro fell to a fresh 10-year low against the yen on Thursday, driven by selling from Japanese retail investors and exporters. Fill the Free Trial form for Free Pre-Market Calls for Tomorrow 30 Dec 2011 intraday stock tips, Commodity tips, option call and put tips daily...
Bank Nifty bounced from support level @10910...
