ET:Sensex tanks 450 points on weak rupee, rate cut concerns
MUMBAI: The benchmarks extended intraday losses and closed near day's low on Friday as investors booked profits following a sharp correction in rupee against the US dollar and the Reserve Bank of India Governor D Subbarao's comments that inflation still remained high.
The rupee is Asia's third worst currency and has dropped 4.9 per cent in May. It has corrected for fourth straight session and fell 16-month low in trade today. It was trading at 56.77, down 39 paise against previous close.
GDP for fourth quarter grew at 4.8 per cent against 4.7 per cent in previous quarter. It was marginally lower than ET Now poll estimate of 4.9 per cent. The GDP growth figure for Q3 has been revised to 4.7 per cent vs 4.5 per cent earlier.
India's GDP for FY13 grew at 5 per cent, lowest in a decade, vs 6.2 per cent, Year-on-Year (YoY).
Helped by higher revenue mop up, fiscal deficit for 2012-13 worked out to be at 4.89 per cent of GDP, down from revised estimate of 5.2 per cent, sources said.
"Due to good revenue receipt and higher non tax revenue collection, fiscal deficit has come to 4.89 per cent against revised estimate of 5.2 per cent," finance ministry sources said.
The S&P BSE Sensex ended at 19,762.80, down 452.60 points or 2.24 per cent. It touched a high of 20,191.29 and a low of 19,730.55 in trade today.
The Nifty closed at 5,984.45, down 139.60 points or 2.28 per cent. It touched a high of 6,106.25 and a low of 5,975.55 in trade today.
The S&P BSE Midcap Index fell 1.27 per cent and the S&P BSE Smallcap Index was down 1.50 per cent.
The S&P BSE Realty Index fell 3.20 per cent, the S&P BSE Oil & Gas Index was 2.73 per cent lower, the S&P BSE FMCG Index declined 2.33 per cent and the S&P BSE Bankex was 2.25 per cent lower.
The BSE IT Index bucked the trend and closed up 0.94 per cent as the weak rupee benefits Indian IT industry.
UltraTech Cement (5.18 per cent), Reliance Infrastructure (4.92 per cent), Punjab National BankBSE -1.13 % (4.64 per cent), IDFC (4.57 per cent) and GAIL (4.57 per cent) were among the top Nifty losers.
InfosysBSE 1.23 % (2.67 per cent), Sesa Goa (2.44 per cent), Ambuja Cements (0.85 per cent), HCL Tech (0.65 per cent) and TCS (0.11 per cent) were the only gainers.
The market breadth was negative on the NSE with 165 gainers against 616 losers.
