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Sensex extends losses for second session, drops 363 points

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Press Trust of India Mumbai
Last Updated : Sep 23 2013 | 5:01 PM IST
Stocks extended losses for the second session, with the benchmark S&P BSE Sensex today plunging 363 points to end below the 20,000 mark, on concern RBI Governor Raghuram Rajan would increase rates further to curb inflation.
The banking and realty sectors, which are sensitive to interest rates, were the biggest losers. Mortgage lender HDFC, ICICI Bank and HDFC Bank dragged the Sensex lower by about 155 points.
The 30-share Sensex opened more than 200 points lower, extending a 383-point fall on Friday, when the RBI unexpectedly raised the repo rate to 7.5 per cent from 7.25 per cent, saying inflation had to be lowered to more tolerable levels.
The index traded between 19,826.30 and 20,199.81 before ending at 19,900.96, a drop of 362.75 points or 1.79 per cent. It has declined 745.68 points, or 3.62 per cent, in the past two sessions.
The CNX Nifty index on the National Stock Exchange closed at 5,889.75, losing 122.35 points or 2.04 per cent. The SX40 index on the MCX Stock Exchange fell 206.17 points to 11,820.24.
IT stocks Wipro, Infosys and TCS gained as the rupee weakened. The local currency traded at 62.6 against the dollar in the afternoon compared with Friday's close of 62.23.
British lender Standard Chartered said it expects the RBI to increase the repo rate to 8 per cent by the end of 2013 as it focuses more on inflation than growth, while Japanese brokerage Nomura said it expects a 0.50 per cent hike in the rate this fiscal.
Credit Suisse said there may be one or two more repo rate increases from the RBI in the next few months, without quantifying the expected increases.

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First Published: Sep 23 2013 | 5:01 PM IST

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