Rajan’s inflation byte bleeds Sensex by 240 pts to 21,134
25 Jan 2014 12:21 AM GMT
Weak global trends following poor economic data in the US and China also impacted the market sentiment.
The 30-share index closed at 21,133.56 points, down by 240.10, or 1.12 per cent — the biggest loss since 2 January. The barometer had closed at record high levels in the previous two sessions on the back of strong corporate earnings.
Profit booking was triggered by RBI Governor Raghuram Rajan comments that inflation was a ‘destructive disease’ that was forcing the bank to keep interest rates high, brokers said. ‘The point is inflation is hitting the growth in the long run. There can be no trade-off. There is need to bring inflation down,’ Rajan had said Thursday.
The broad-based National Stock Exchange index Nifty fell by 78.90 points, or 1.24 per cent, to settle at 6,266.75.
‘Markets did react to the weak economic data in China and US,’ said Dipen Shah, Head- Private Client Group Research, Kotak Securities.
Interest rate sensitive stocks suffered the most, with the BSE realty index dropping the most by 3.19 per cent. Capital Goods index fell by 2.68 per cent, Consumer Durables index by 2.65 per cent and banking index by 1.88 per cent.
Among major Sensex losers, Bhel dropped by 3.39 per cent, Tata Motors by 3.26 per cent and ICICI Bank by 1.96 per cent. Among 30 Sensex stocks, 27 declined.
Only three Sensex stocks — Reliance Industries, NTPC and Bajaj Auto —gained and saved the market from further fall.
Rupee tanks 73p to two-month low of 62.66 against $
Mumbai: The Indian rupee crashed by 73 paise to close at two-month low of 62.66 against the US currency on strong dollar buying by banks and importers.
Forex dealers said weakness in local equities cast a shadow on the rupee. Dollar losing in overseas markets didn't impact the fall of the local currency, they added.
Dollar short-covering by some banks was triggered at 62.45-62.50 level pulling down rupee further at the fag-end.
‘The month-end dollar demand, downbeat data from China and Fed’s tapering plan are all seen putting pressure on the rupee,’ said Abhishek Goenka, CEO of India Forex Advisors.
The Federal Open Market Committee, responsible for open market operations in the US, is meeting for two days on 28 January and 29 January. At the Interbank Foreign Exchange market, the local unit resumed lower at 62.12 a dollar from last close of 61.93. It attempted a recovery at 62.07, but soon fell to a low of 62.73 before settling at 62.66, a fall of 73 paise. This is the biggest one-day fall in rupee since 11 November, 2013 when it had tumbled by 77 paise.The last time the rupee closed at Friday's level was on November 22, 2013, when it finished at 62.87.
The 30-share index closed at 21,133.56 points, down by 240.10, or 1.12 per cent — the biggest loss since 2 January. The barometer had closed at record high levels in the previous two sessions on the back of strong corporate earnings.
Profit booking was triggered by RBI Governor Raghuram Rajan comments that inflation was a ‘destructive disease’ that was forcing the bank to keep interest rates high, brokers said. ‘The point is inflation is hitting the growth in the long run. There can be no trade-off. There is need to bring inflation down,’ Rajan had said Thursday.
The broad-based National Stock Exchange index Nifty fell by 78.90 points, or 1.24 per cent, to settle at 6,266.75.
‘Markets did react to the weak economic data in China and US,’ said Dipen Shah, Head- Private Client Group Research, Kotak Securities.
Interest rate sensitive stocks suffered the most, with the BSE realty index dropping the most by 3.19 per cent. Capital Goods index fell by 2.68 per cent, Consumer Durables index by 2.65 per cent and banking index by 1.88 per cent.
Among major Sensex losers, Bhel dropped by 3.39 per cent, Tata Motors by 3.26 per cent and ICICI Bank by 1.96 per cent. Among 30 Sensex stocks, 27 declined.
Only three Sensex stocks — Reliance Industries, NTPC and Bajaj Auto —gained and saved the market from further fall.
Rupee tanks 73p to two-month low of 62.66 against $
Mumbai: The Indian rupee crashed by 73 paise to close at two-month low of 62.66 against the US currency on strong dollar buying by banks and importers.
Forex dealers said weakness in local equities cast a shadow on the rupee. Dollar losing in overseas markets didn't impact the fall of the local currency, they added.
Dollar short-covering by some banks was triggered at 62.45-62.50 level pulling down rupee further at the fag-end.
‘The month-end dollar demand, downbeat data from China and Fed’s tapering plan are all seen putting pressure on the rupee,’ said Abhishek Goenka, CEO of India Forex Advisors.
The Federal Open Market Committee, responsible for open market operations in the US, is meeting for two days on 28 January and 29 January. At the Interbank Foreign Exchange market, the local unit resumed lower at 62.12 a dollar from last close of 61.93. It attempted a recovery at 62.07, but soon fell to a low of 62.73 before settling at 62.66, a fall of 73 paise. This is the biggest one-day fall in rupee since 11 November, 2013 when it had tumbled by 77 paise.The last time the rupee closed at Friday's level was on November 22, 2013, when it finished at 62.87.
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