Sensex pares early losses, still down 59 points; Rupee cuts losses

Mumbai :The BSE benchmark Sensex pared some of its initial losses on bouts of buying and selling, but was still down 59 points in late-morning trade following weak global cues, which soured sentiment.

Selling took hold in FMCG, metal, IT and technology sectors while capital goods, banking, auto and realty stocks saw buying.

The BSE Sensex resumed lower at 26,107.98 and hovered in a range of 26,148.39 and 25,972.54 before quoting at 26,159.96 at 1128 hours, down 58.95 points, or 0.22 per cent, from its last Friday’s close.

The 50-share Nifty was also down 17.70 points, or 0.22 per cent, at 7,964.20 at 1128 hours.

The major decliner was HDFC (down 1.43 per cent), followed by Reliance, DRL and Cipla.

Tata Motors gained 1.40 per cent followed by Axis Bank, Maruti and L&T.

Meanwhile, foreign portfolio investors (FPIs) net bought shares worth Rs 643.51 crore last Friday, as per provisional data released by the stock exchanges.

Overseas, Asian markets were trading lower in early trade, tracking an uninspiring lead from the Wall Street as the US Fed’s decision to keep interest rates near zero stoked concerns about global growth.

The rupee gave up early losses, but was still trading down by 13 paise at 65.80 against the US currency in late-morning deals following a sustained bout of dollar demand from banks and importers amid weak domestic equities.

The rupee opened sharply lower at 65.88 as against last Friday’s level of 65.67 at the Interbank Foreign Exchange (forex) market.

It moved in a range of 65.88 and 65.77 during the morning deals before quoting at 65.80 at 1030 hours.

The dollar index is currently trading down by 0.15 per cent at 95.09 as against a basket of six currencies.

“The overnight equity sell-off will keep sentiment slightly weak. Dollar demand would come in from importers on dips to 65.55-65.60 per dollar. Any uptick towards 66 per dollar will see some exporter selling to hedge their receivables, a dealer said.

“Expect a range of 65.60-66 per dollar for the day,” he added.

Oil prices rebounded in Asia trade, but analysts said they remain weighed down by an oversupply and fresh worries about the world economy after the Federal Reserve decided last week against raising interest rates.

Meanwhile, the benchmark BSE Sensex was trading lower by 95.04 points at 26,123.87 at 1057 hours.