MUMBAI, APR 17
Stock markets beat a hasty retreat after a strong two-day rally as the soaring rupee today took a toll on export-oriented IT sector, pulling down the benchmark Sensex by 89 points on unwinding of positions by operators.
The rupee's sharp appreciation to below 42-level will have adverse impact on the profit margins of IT companies with large export revenues. The 5.3 per cent rise in rupee value so far in the year could erode profits of these companies by over one to two per cent.
Reflecting the slide in IT stocks, the BSE IT Index fell by 127.65 points or 2.48 per cent to end at 5,022.63.
The fall in IT shares also pulled down the Sensex, which moved downwards after opening firm at 13,733.18 and later ended at 13,607.04, a net loss of 88.54 points or 0.65 per cent from yesterday's close of 13,695.58.
The Sensex had gained 582 points or 4.44 per cent in the last two trading sessions.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) dropped by 28.40 points or 0.71 per cent to close at 3,984.95 from previous close of 4,013.35.
The impact of rupee's surge was so severe that IT major TCS Ltd registered losses despite the company's announcement that it has obtained a one billion dollar hedge at a price range of 43.50-44.50.
TCS also crossed four billion dollar in revenues to become India's number one software exporter while beating fourth quarter growth estimates.
The top heavyweight RIL bucked the trend and scored impressive gains to closed at a new peak.
Infosys Tech, TCS Ltd, Wipro, Satyam Computers, Tata Motors and Cipla were among major losers.
The market turned negative with 1,463 counters falling even as 1,085 registered gains.
The trading volume was improved to Rs 4,565.32 crore from Rs 4,144.83 crore on Monday. ICRA continued to be the top traded share with the highest turnover of Rs 926.01 crore followed by CESC (Rs 165.37 crore), RIL (Rs 154.07 crore), Tata Steel (Rs 116.21 crore) and TCS (Rs 85.24 crore).
The broad-based BSE-100 index reacted downwards by 42.57 points to 6,868.09 from previous close of 6,910.66.
The BSE-200 index and the Dollex-200 were quoted down at 1,623.51 and 646.80 at close compared to last close of 1,633.74 and 646.92 respectively. The BSE-500 index also eased by 32.37 points to 5,172.28 from 5,204.65 and the Dollex-30 ended fractional down at 2,673.21 from 2,674.29 previously.
Infosys Tech dropped by 46.60 to 2081.70, TCS by 30.60 to 1249.50, Wipro by 12.40 to 574.20, Satyam Computer by 23.45 to 455.90, Tata Steel by 4.75 to 528.65, Hindalco by 1.40 to 143.30, Bharti Airtel by 2.60 to 799.50, BHEL by 4.85 to 2541.70, Cipla by 5.50 to 230.00, Grasim by 4.45 to 2372.35, HLL by 2.85 to 210.85, ITC by 2.55 to 156.10, Maruti by 15.70 to 761.65, NTPC by 1.65 to 157.10, ONGC by 8.80 to 890.85, SBI by 5.05 to 1008.70 and Tata Motors by 19.80 to 730.50.
However, RIL rose by 16.05 to 1476.05, ACC by 20.15 to 806.70, Bajaj Auto by 67.35 to 2548.20, Dr Reddy by 3.30 to 717.40, GACL by 1.50 to 113.75, HDFC Bank by 2.25 to 973.75 and L&T by 9.25 to 1669.30
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