Sensex down 60 pts on falling rupee; cement, metal stocks hit

Snapping 3-day upsurge, the BSE benchmark Sensex today declined 60 points on increased capital outflows as rupee slumped to record low amid weak global trend, with cement stocks taking hit over CCI penalty imposed on them.

The Sensex, which had gained over 326 points in the last three sessions, fell 60.05 points or 0.35 per cent to 16,972.41, after losing nearly 223 points during the day.

Selling pressure gathered momentum after rupee slumped to the psychological 57 per dollar mark for the first time on heavy selling by foreign funds on economic growth concerns.

Cement stocks lost ground, after competition watchdog CCI slapped a hefty Rs 6,307 crore penalty on 11 companies for price cartelisation.

Market mood further dampened as Moody’s downgraded world’s 15 biggest banks and a weak trend prevailed in global markets on mounting worries over euro-zone debt crisis including the size of a bailout needed to save Spain’s banks.

The broad-based National Stock Exchange index Nifty dropped to 5,094 before ending 18.95 points lower, or 0.37 per cent to 5,146.05.

The most heaviest on the benchmark – Reliance Industries dropped by 1.05 per cent to Rs 711.05 on reports of lower output estimates by its Canadian partner Nikko Resources. The second heaviest Infosys lost 0.69 per cent to Rs 2,475.10. The two carry nearly 18 per cent weightage on the Sensex.

In 30-BSE index components, 16 stocks fell while 14 ended higher. The metal, capital goods, teck, IT, FMCG and refinery sector stocks led the fall.