Nifty closes at 1-month low, Sensex down over 200 points on rupee weakness

The Indian markets closed deep in red as therupee depreciated for a fifth day in a row.Analysts rule out a depreciation to the levels of near-69, but don’t rule out 64 levels in the near term.

Strong jobs data in the US has led to concerns that the Federal Reserve may start tapering of economic stimulus as early as next month.

UR Bhat of Dalton Capital Advisors believes taper talk is probably going to be back on the table pretty soon with the strength in the US economy

Nifty closed at 1-month low as the rupee neared 64 against the US dollar, while the Sensex fell for a sixth straight day.

[caption id=“attachment_1168099” align=“alignleft” width=“380”]  The short-term uptrend would be under threat only if the Nifty falls below the recent swing low of 5,700.[/caption]

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Sensex closed 223 points down at 20267, Nifty closed 60 points down at 6018. The Indian rupee isdown 5% in the last six trading days and is currently trading at 63.78 against the US dollar.

Top Sensex losers were Tata Motors ( down 4 percent), ICICI Bank (down 2.7 percent) and Sesa Sterlite ( down 2.5 percent.).

Bhat sees the Nifty being restricted in a range of 5850-6350, with 5865 being a crucial support for the index. He continues to be positive on IT, pharma and private sector bank shares, and is bearish on the power sector.

The September industrial output and October CPI data due after market hours. CPI will be particularly watched as the Reserve Bank of India is putting higher weight on the index while making monetary policy decisions.