Sensex wilts on Rupee, US slowdown fears

Concerns over a rising rupee and slowdown in the US have triggered the biggest fall in the benchmark index in the new year on Monday. Led by IT stocks, the Sensex tumbled by 208.35 points or 1.50 per cent, as it was felt that an appreciating rupee may dent the export earnings by IT and other export-oriented sectors.

The broadbased S&P CNX Nifty shed 50 points or 1.26 per cent to end the day at 3,933.40 points.

"The market is witnessing a weak sentiment, which led to a selling pressure today. This could continue till companies start announcing their third-quarter results," a top fund manager with SBI Mutual Fund said.

The Sensex opened at 13,855.89 points, lower than its previous close of 13,860.52 points, and managed to reach a high of 13,855.89 before finally settling at 13,652.15. The BSE Mid-Cap index lost 24.66 points or 0.42 per cent to 5,912.01 points.

The BSE Small Cap index inched northwards gaining 59.09 points or 0.82 per cent to end the day in the green at 7,191.55.

Maruti was the top loser, going down by Rs 38.25 or 4.09 per cent to Rs 897.35. Wipro lost 3.20 per cent to Rs 579.65, while Infosys was down by 3.03 per cent to Rs 2,205.95. The Satyam scrip shed 3.01 per cent to Rs 486.95 and Reliance Communication 2.64 per cent to Rs 435.53.

Of the 30 Sensex stocks, only three finished in green. State-run ONGC was the top gainer, up by Rs 14.99 (1.66 per cent) to Rs 910.85. Ranbaxy grew 1.33 per cent to Rs 418.95 and Dr Reddy's was up 0.22 per cent to Rs 811.

However, the analysts are bullish over movement of the construction, infrastructure, media and IT stocks in the small cap category and expect them as well as mid-caps to gain better pace once the Q3 and final quarter results are out.

"The Q3 results of small-caps and mid-caps could be better than that of large-caps. Though the movement in these non-premium stocks is based on Sensex stocks, we see them as a better buy as their valuations are attractive," a senior analyst said.

Despite the selling pressure, 1,741 stocks (63 per cent) advanced, while 934 sunk (34.29 per cent) and 49 remained stagnant, of the 2,724 stocks traded.