Sensex snaps 3-day gaining streak; down 60 pts on rupee fall

The BSE 30-scrip index resumed lower and dropped to day's low of 16,807.80 on weak global markets, impacted by a string of domestic and overseas factors including slowing economic growth, Moody's downgrading 15 of the world's big banks and persisting euro-zone troubles.

However, it wiped out much of the losses on short- coverings in view of next week's settlement in this month's derivatives contracts and selective value buying to settle at 16,972.51, down 60.05 points of 0.35 per cent. In last three days, it had risen by 326.73 points or 1.96 per cent.

The NSE 50-share index, Nifty, also fell 18.95 points or 0.37 per cent to end at 5,146.05.

The rupee fell way past the 57 mark against the US dollar for the first time to touch historic low of 57.30, adding to investor woes as it will impact negatively on the import dependent companies.

The heaviest stock on the benchmark, Reliance Industries dropped another 1.05 per cent. RIL's flagging KG-D6 block holds 80 per cent less natural gas reserves than previously estimated, the firm's junior partner Niko Resources of Canada said yesterday, when the stock had fallen 2.58 per cent. The second heaviest Infosys lost 0.69 per cent. The two carry nearly 18 per cent weigh on the Sensex.

Of the 30 Sensex firms, 16 fell, while 14 ended with gains. Metals, capital goods, teck, IT, FMCG and refinery stocks led the fall.

Asian markets ended lower tracking sharp fall, second biggest drop of the year, on the Wall Street. Key indices in Singapore, Japan, Taiwan, South Korea and Hong Kong finished lower by up to 2.21 per cent. MORE