Millennium Post

Sensex ends at one-month low

Sensex ends at one-month low
The Sensex on Monday dropped by 281 points to nearly one-month low of 16,877.35 as global markets roiled in debt problems resurfacing in Spain over the weekend.

Global stocks crashed after reports said Spain's Murcia region could apply to access government's funds within days of another region, Valencia, planning to take the same route.

Later in the day, Bank of Spain said its economy contracted by 0.4 per cent in April-June period, after slumping by 0.3 per cent in January-March period.

After opening lower, the BSE benchmark index closed with a loss of 281.09 points, to end below the 17,000 mark as all sectoral indices, led by metal and realty, suffered losses.

Out of the 30-share Sensex, 28 stocks led by Maruti and Sterlite that lost over 5.5 per cent each, closed lower as across-the-board selling was seen. Private banks HDFC Bank and ICICI bank shed nearly 2 per cent each while ITC, Infosys and RIL lost around one per cent each.

Metal stocks, including Hindalco and Tata Steel, also ended lower on reports that the Chinese economy – the biggest consumer of metals – may slow further in third quarter.

‘The selling pressure was triggered following the weakness in the global markets induced by renewed economic worries related to Spain,’ said Nidhi Sarswat, Senior, Research Analyst, Bonanza Portfolio.

The 50-share National Stock Exchange index Nifty lost 87.15 points, or 1.67 per cent to 5,117.95. Key Asian benchmark indices in Japan, Hong Kong and China closed with losses in the 2-3 per cent range while European markets were trading with sharp losses.


Tracking weak local equities amid firm dollar overseas, the rupee also plunged further by 65 paise to log its three-week closing low of 55.97 against the Greenback, losing ground for the straight second session.

Month-end dollar demand from importers, mainly oil refiners, too weighed on the rupee as continued inflows from foreign funds in stocks could not able to stem the fall in the rupee value.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced sharply lower at 55.70 a dollar from last weekend's close of 55.32 but immediately tried to recover to the day's high of 55.61.

However, it fell sharply in the later part of the day to a low of 55.98 before concluding at 55.97, level not seen since 28 June 2012, showing a steep fall of 1.17 per cent.


After two rounds of rate cuts last month, petrol price was on Monday hiked by 70 paise per litre on firming international oil rates.

Petrol in Delhi will cost Rs 68.48 per litre with effect from Monday midnight as compared to Rs 67.78 a litre now, state-owned oil companies announced on Monday.

The marginal hike in rate follows reductions last month-Rs 2.02 per litre on 3 June and Rs 2.46 a litre on 29 June. The twin price cuts followed the massive Rs 7.54 per litre increase in rates, the biggest in the history, effected in May.

Monday’s increase was ‘necessitated due to increasing international oil prices and movement in INR-USD exchange rate,’ Indian Oil Corp, the nation’s largest fuel retailer, said in a statement.

Average price of Indian basket of crude is $101.28 per barrel while international petrol price is $111.59 a barrel. ‘At these levels, the oil companies are incurring losses of about Rs1.41 per litre on petrol sales in the domestic market. However, as the price movement is quite volatile, it has been decided that an increase of Rs 0.70 per litre,’ it said.

In Mumbai, petrol price is raised by Rs 0.88 to Rs 74.24 per litre, while it will cost Rs 73.61 in Kolkata.


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