Mkt nervous on weak rain forecast;steep losses for FMCG shares

Forecast of below normal monsoon this year because of possible El Nino factor caused jitters in stock markets today, with the BSE benchmark Sensex tumbling from its historic high levels by over 188 points to close the day at 22,688.07.
Shares of FMCG firms like ITC and HUL, whose sales in rural areas are linked with good rain, were battered. ITC was the biggest loser at 2.76 per cent. HUL lost 2.58 per cent.
"Results declared by ICICI Bank and Maruti were also muted, dragging markets to trade lower," said Jayant Manglik, President, Retail Distribution, Religare Securities.
In early trade, the BSE 30-share barometer gave hints of breaching for the first time the all-crucial 23,000-level as it rose to 22,939.31, its highest ever level.

It, however, could not keep the tempo as intense selling emerged after mid-session, pulling down the key index by 188.47 points or 0.82 per cent to 22,688.07.
The 50-issue Nifty of NSE also dipped by 58.05 points or 0.85 per cent to 6,782.75. It logged its historic high of 6,869.85 during the day.

The Sensex had registered its all-time closing high 22,876.54 in its previous trade.
"The major reason seems to be concerns over the news that monsoon is likely to be below normal this year which will impact country's economy," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
"The monsoon seasonal rainfall is likely to be 95 per cent of the Long Period average with an error of plus or minus 5 percent," Indian Meteorological Department said in a statement yesterday.

Officials in the weather department had said the monsoon was expected to be below normal because of the El-Nino effect.