Sensex up just 12 pts, Re at record-low dashes rate cut hopes

After rising over 150 points, the BSE benchmark Sensex today surrendered most of its gains to close just 12 points higher on profit-booking as rupee at all-time low was seen preventing RBI from cutting interest rates on June 17.
However, IT stocks led by Wipro and Infosys, helped the 30-share Sensex eke out marginal gains, snapping a two-day losing run, on hopes of gains in dollar-denominated revenues.
The Bombay Stock Exchange 30-share barometer went up to 19,585.75 but erased gains as a weak rupee slid to lifetime low. Helped by shares of IT firms -- which earn significant portion of revenues from US -- the Sensex regained some lost ground to settle at 19,441.07, a rise of 11.84 points.

Rupee today plunged to an all-time low of 58 against the dollar, heightening inflation worries and current account financing risks of the economy. Traders said after RBI Governor D Subbarao's comments last week, the weak rupee will prevent the central bank from going for a rate cut on June 17.
The 50-issue NSE Nifty eased by three points to 5,878.00 and the MCX-SX flagship index, SX40, ended 3.99 points higher at 11,532.69.
Besides, IT, Tech, FMCG and Oil&Gas indices all other sectoral indices closed in the negative terrain with consumer durable, realty, banking and pharma sectors suffering the most on selling pressure.

"Markets were volatile today but ended the day in the negative, dragged down by concerns on rupee. The European markets opened lower before recovering. The rupee made new life-time lows on continuing concerns about CAD and reversal in FII flows," said Dipen Shah, Head of Private Client Group Research, Kotak Securities.
Heavyweights like ICICI Bank, Tata Motors, Bharti Airtel, Sun Pharma, Jindal Steel, Maruti and BHEL saw losses.
Most Asian stocks, barring China, closed higher after a report showed the US added more workers than expected. Key indices in Hong Kong, Japan, Singapore, Taiwan and South Korea rose by 0.18 per cent to 4.94 per cent.