Sensex, Nifty extend losses as rupee hits 57/dollar

Weakness continues in the markets as the rupee plunged to an all-time low of 57 against the dollar. While the Sensex is down 1.2 percent, Nifty has fallen 1.3 percent. Continuing its falling streak for the fifth straight day today, the rupee hit yet another record low of 57.22, down 0.92 paise 1.64% on sustained capital outflows and strong demand from oil importers for the American currency.

On sectoral front metal stocks were trading weak on the back of negative trend in global metal prices, while automobile stocks were edging higher. However, fall in crude oil prices, which slipped below the psychological $80 a barrel mark for the first time since October 2011, is not likely to benefit the government, which imports more than 80% of its requirement, on rupee depreciation.

 The broader indices gained some additional traction in comparison to their morning deals; the BSE Mid cap and Small Cap indices were trading higher by 0.05% and 0.20% respectively.

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Reliance Industries is down 1.9 percent on renewed concerns about gas output after Canada’s Niko Resources Ltd slashed the reserve estimate at the KG D6 block, in which both hold stakes.

Financial firms are the lead decliners: Housing Development Finance Corporation is down 1.2 percent, while ICICI Bank has fallen 1.6 percent.

The few gaining sectoral indices on the BSE were, Auto up by 0.43% and Health Care up by 0.43%. While, Metal down by 1.33%, Capital Goods down by 0.81%, Bankex down by 0.58%, Realty down by 0.50% and TECk down by 0.49% were the top losers on the index.

The top gainers on the Sensex were Maruti Suzuki up by 1.97%, Cipla up by 1.73%, Hero MotoCorp up by 1.52%, M&M up by 1.01% and Bajaj Auto up by 0.96%.

On the flip side, Hindalco Industries down by 1.65%, HDFC down by 1.51%, Tata Steel down by 1.41%, Reliance down by 1.21% and Tata Power down by 1.17% were the top losers on the Sensex.

Meanwhile, India and China, the two emerging nations often regarded as global growth machines, are aiming to boost bilateral trade between the two leading Asian economies to $100 billion by 2015. The two Asian giants enjoyed a bilateral trade of a record $73.9 billion in the previous year. However, India’s trade deficit with China enlarged to $27.07 billion, even as Indian exports grew nearly 13 percent to $23.4 billion, according to official data.

Indian Prime Minister Manmohan Singh, who is in Brazil to attend Rio+20 Summit, met his Chinese counterpart Wen Jiabao and brought to his notice the large trade surplus in China’s favor. The Chinese premier, who met Manmohan Singh for the 13th time since 2004, acknowledged that India has a large trade deficit with the Asian giant and in that context he said rice exports from India would be allowed soon.

Agencies