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Sensex declines by 192 points on further fed stimulus tapering

The benchmark Sensex on Thursday slipped below the 26,000-mark by falling over 192 points as caution prevailed on the expiry of July derivative contracts and capital outflows after US Fed once again tapered its stimulus. Besides, a weakening rupee that depreciated 46 paise against the dollar to 60.52 intra-day also weighed on the stock market sentiment, brokers said.

Good earnings from some bluechips were outweighed by selling in power, banking, consumer durables, capital goods, auto, IT and infrastructure space, they added. The BSE Sensex began on a weak note and continued to lose momentum to touch an intra-day low of 25,853.69. It settled at 25,894.97, down 192.45 points, or 0.74 per cent. It touched the day’s high of 26,118.88. In the 30-share Sensex, 24 closed with losses, while six others ended higher. The 50-share NSE index Nifty, after dipping to 7,711.15, finally settled the session down 70.10 points, or 0.90 per cent, at 7,721.30, its biggest fall since 11 July.

The US Fed on Wednesday continued with gradual tapering and reduced asset purchases by another $10 billion/month. ‘Besides squaring-up of outstanding positions on the last session of July series, fresh round of selling by foreign funds dampened the sentiments,’ said Rajiv Malik, a Delhi-based stock broker.
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