The benchmark Sensex extended losses for the sixth straight day and fell 209 points to a one-month low today as the rupee continued to drop against the dollar before the release of industrial production and consumer inflation data.
Tata Motors, ICICI Bank and Reliance Industries were the biggest drag as 26 of the 30 shares on the index fell. Sesa Sterlite and Tata Power were among the big losers.
Metal, power and auto sector stocks led 12 of the 13 BSE group indices lower.
The 30-share Sensex resumed higher at 20,510.31 and moved in a range of 20,262.22 to 20,584.22 before ending at 20,281.91, a loss of 209.05 points or 1.02 per cent.
The index has dropped 957.45 points, or 4.51 per cent, since its peak closing of 21,239.36 in a special muhurat session on November 3.
The Sensex was at the lowest level since closing at 20,272.91 on October 10. It was the longest losing streak for the index since the eight days ended August 2.
The 50-share CNX Nifty on the National Stock Exchange dipped 60.75 points, or 1 per cent, to a one-month low of 6,018.05. The SX40 on the MCX Stock Exchange ended 93.76 points lower at 12,086.48.
The rupee, which fell for the fourth session yesterday, dropped further and approached the 64 level. The currency's slide against the dollar lowers the value of investments by foreign institutions in stocks and bonds, said analysts.
A lower rupee also increases the import bill and could fuel inflation. The rupee touched a two-month low of 63.83 per dollar and was quoted at 63.78 at 1530 hrs.
"We are also awaiting IIP and CPI numbers which the market feels will put a damper on the mood," said Shrinivas Viswanath, cofounder of RKSV.
Car sales, considered by investors as a signal of consumer sentiment, provided little cheer with domestic sales declining 3.88 per cent in October, according to the Society of Indian Automobile Manufacturers.
