The Sensex fell for a second session today to its lowest close in two months, led by declines in HDFC after Goldman Sachs downgraded the stock to 'sell', while ITC fell on fears of a rise in excise duty for tobacco in the coming budget.
Shares are expected to be range-bound ahead of the 2013-14 Budget, to be unveiled on February 28, and investors will watch whether the finance minister will manage to impose fiscal discipline, even as the government tries to revive growth.
The benchmark BSE Sensex fell 0.04 per cent, or 8.35 points, to end at 19,317.01, after falling 0.77 per cent for the week, marking a fourth week of falls. The broader Nifty fell 0.03 per cent, or 1.95 points, to end at 5,850.30, also ending 0.63 per cent lower for the week.
Housing Development Finance Corp Ltd fell 1.9 per cent, its biggest single day fall since January 11, after Goldman Sachs cut its rating on to 'sell' from ‘neutral’, on expectations that Asia’s third-largest economy would recover at a ‘modest’ pace and the prospect of rising competition.
ITC Ltd fell 1.6 per cent, marking a third day of losses, on continued fears of a rise in excise duty in the coming budget.
