Sensex slumps 286 pts on weak rupee; realty, metal stocks tank

Extending losses for the second session in a row, the BSE benchmark Sensex today lost a hefty 286 points led by a fall in realty and metal sector stocks on selling by funds, after rupee tanked below the 60 mark against the US dollar amid a weak trend overseas.
Also, bank stocks slumped on RBI proposing incremental provisioning and capital requirements for banks' exposure to corporates having unhedged forex exposure.
The 30-share index started the day on sluggish note at 19,252.18 and fell further in line with a weakening rupee which crossed the 60 mark in intraday. Sensex closed the day lower by 286.06 points, or 1.47 per cent, at 19,177.76.

Similarly, the wide-based National Stock Exchange index Nifty lost 86.65 points, or 1.48 per cent, to close at 5,770.90. Also, SX40 index, the flagship index of MCX-SX, closed 153.09 points, or 1.32 per cent lower at 11,413.38.
Brokers said the trading sentiment turned bearish as brent crude rose 66 cents to hit a one-week high at USD 104.66, oil climbed above USD 1a barrel for the first time in nine months and rupee dropped over 60 per dollar reduced chances of a rate cut by the RBI.
A weakening trend in the global markets as Portugal's coalition government splintered and rising unrest in Egypt, further dampened the sentiment, they added.

Out of the 30 BSE index components, 27 stocks closed with losses.
Reliance Industries fell to one-week low by dropping 2.41 per cent to Rs 850.30 and State Bank of India fell the most in six weeks by losing 4.58 per cent to Rs 1,899.60. Sterlite Industries, also a index kitty stock plunged 4.58 per cent to Rs 84.30.
Sectorally, the realty sector index suffered the most by losing 4.76 per cent to 1,487.77 followed by metal index by 3.11 per cent to 7,623.05.