Markets fall for fourth day as rupee breaches 90 mark, FPI worries rise

Domestic equities fell for a fourth straight session as the rupee slipped past 90 per US dollar, raising fears of FPI outflows, while a delayed US trade deal also weighed on sentiment

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Domestic markets declined for a fourth consecutive day on Wednesday as the slide in the rupee impacted sentiment and stoked concerns over foreign portfolio investor (FPI) outflows. Also, the delay in the trade deal with the United States also weighed on the market performance. 

After declining as much as 375 points, the Sensex ended at 85,107, down 31.5 points, or 0.04 per cent. The Nifty fell 46 points, or 0.2 per cent, to end at 25,986. The Sensex and the Nifty are down 0.7 per cent and 0.9 per cent in the past four trading sessions after logging their all-time highs on November 27.

 

The rupee slid past the 90 per US dollar mark to a record low on Wednesday.

 

Of the 16 major sectoral indices, 11 ended in losses. The Nifty Smallcap 100 indices and Nifty Midcap 100 indices fell about 0.7 per cent and 1 per cent, respectively. Nifty PSU Bank index fell the most at 3.1 per cent, the most in seven months, after the government said it is not considering increasing the limit on foreign direct investment for the sector to 49 per cent. 

The Nifty Information Technology (IT) rose 0.8 per cent as the rupee weakness is expected to benefit the sector. In anote, Motilal Oswal said the valuation set up for IT remains highly attractive,while upgrading Infosys, Wipro, and Mphasis.

 

Overall market breadth was weak, with 1,396 advancing and 2,767 declining.