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Sensex sheds 194 points
The Bombay stock Exchange on Tuesday went on a roller coaster ride with the barometer Sensex first scaling a new peak of 20238 and later setting in sub 20k area on alternate bouts of buying and selling across sectors.
A number of bank stocks, including ICICI Bank, HDFC Bank and PNB, fell follwing the Reserve Bank decision to hike the amount of depositors money that banks must keep in reserve. Besides selling pressure emerged across other sectors later in the day after a morning surge pushed the Sensex past the 20000 level for the second consecutive day.however the index failedto close above this milestone.
Real estate stocks including DLF and Unitech defied the overall selling pressure and saw their market value grow. Snapping its six day winning steak, the 30-share Sensex setted at 19783.51 down 194.16 points from the previous close. The NSE Nifty also hit a new record high of 5971.70 before closing down by 37.15 points at 5868.75.
The rupee gained further and ended at 39.42/43 a dollar on Monday largely buoyed by the Serve Bank of India mid term review of Annual policy amid fresh dollar demand and negative equity market. The rupee moved in a range of 39.3250 and 39.4950 during the day after resuming virtually steady at 39.41/43 a dollar. Any rate cut by the U.S federal Reserve at its meeting on October 31 is expected to push up the rupee further