Markets snap five-day winning run

BSE's Sensex fell 215.57 points or1.08% to close at 19,781.88. NSE's Nifty fell 62.45 points or 1.06% to end at 5,850.70

Stock markets fell on Thursday, ending a five-day winning run, as a drop in the rupee sparked profit booking especially in banks. While the undertone was cautious ahead of the industrial production and consumer inflation data due after trading hours on Thursday, foreign institutional investors extended their buying spree, purchasing shares worth about Rs 930 crore.

BSE’s Sensex fell 215.57 points, or1.08 per cent, to close at 19,781.88. NSE’s Nifty fell 62.45 points, or 1.06 per cent, to end at 5,850.70.

“We are seeing consolidation taking place within 5,800-5,925 zone, while supporting indicators are in the favour of further rise,” said Jayant Manglik, president, Religare Securities.

Analysts said sentiment also dampened after Bank Indonesia raised its benchmark policy rates by 25 basis points, raising concerns that the Reserve Bank of India (RBI) might also follow suit. “It needs to be noted that like India, Indonesia has also suffered a sharp depreciation in its currency,” said Sanjeev Zarbade, vice-president (private client group research) at Kotak Securities.

“The move comes as a surprise as it was widely expected that the central bank would keep rates on hold after it raised the benchmark rate by 50 basis points in late August in an attempt to prop up the beleaguered rupiah,” he added.

Indonesia’s Jakarta Stock Exchange Composite Index ended slightly higher on Thursday.

Dealers said the wholesale price inflation data and tempered expectations over the pace at which the US Federal Reserve would withdraw its stimulus after its meeting next week was also seen weighing on the market. “Macro data, Fed meet hold importance, but I see RBI policy on September 20 to be a silver lining amid the dark clouds," said Deven Choksey, managing director of KR Choksey Securities.