Indian shares near four-month low
The Sensex and the Nifty fell for a third straight session to notch its lowest close since January 16
Mumbai The Sensex and the Nifty fell for a third straight session to notch its lowest close since January 16, as the Reserve Bank of India's (RBI) measures to bolster the rupee had a muted impact and as fears grow about sustained foreign selling.
Blue chips such as State Bank of India and Infosys extended recent declines yesterday, despite appeasing measures from the government and the Reserve Bank of India.
The government on Monday delayed a controversial plan for taxation by a year, while yesterday the central bank announced measures to boost dollar liquidity and ease intra-day rupee volatility.
However, both measures were not seen as enough to turn the tide in Indian markets, especially as global risk sentiment tumbles because of renewed concerns about the Eurozone.
Foreign investor have sold a net of Rs13.4 billion (Dh935 million) over the previous three sessions, according to provisional exchange and regulatory data.
"There is a risk aversion seen in international investors as even the commodities and broader markets are falling," said Sunil Jain, Head, Equity Research at brokerage Nirmal Bang.
The Sensex fell 0.4 per cent to 16,420.05. The benchmark index has dropped 11.35 per cent since hitting its 2012 peak on February 22, though it's still up 6.2 per cent for the year. The Nifty lost 0.18 per cent to 4,965.70.
In the short-term, global risk aversion will likely play be key in determining the markets' outlook, according to traders.
Investors will also wait for industrial output data due out today and the more important inflation report due on Monday.
Lenders were among the day's decliners, even as the RBI measures were seen as benefitting the sector. State Bank of India declined 2.12 per cent, while ICICI Bank fell 0.95 per cent.
Among other blue chips, software services exporters Infosys lost 0.93 per cent, while Reliance Industries lost 0.14 per cent.
Shares in Maruti Suzuki ended down 3 per cent after Suzuki Motor Corp, which owns a 54.2 per cent stake in the local unit, posted a lower-than-expected fourth-quarter operating profit and gave muted guidance.
