Sensex retreats from record closing highs, dips 53 points

The BSE Sensex fell on Wednesday, retreating from record closing highs in the previous session as exporters, including IT companies such as Tata Consultancy Services, dropped amid concerns about the impact of a stronger rupee.

Exporters were among the top decliners in the rally in anticipation of Narendra Modi's victory in general elections last month, as investors preferred domestic-oriented stocks that would benefit from a revival in the economy.

Investors expect some consolidation ahead of the new government's budget, due to be unveiled by early or mid-July.

The benchmark BSE Sensex fell 0.21 per cent, or 52.76 points, to end at 24,805.83, retreating from its record closing high hit on Tuesday.
 

The broader Nifty dropped 0.18 per cent, or 13.60 points, to end at 7,402.25, just managing to close above the psychologically important 7,400 level.

Software stocks fell on continued concerns about the stronger rupee. The local currency has gained four per cent so far this year and is among the best performers among the Asian currencies tracked by Reuters.

TCS fell 1.9 per cent, Infosys ended 1.1 per cent lower and HCL lost three per cent. Among pharmaceutical exporters, Sun Pharma fell 1.2 per cent and Dr Reddy's Laboratories lost 0.8 per cent.

RIL fell 1.6 per cent after JPMorgan downgraded the stock to 'neutral' from 'overweight', saying share prices already reflect positive catalysts even as fundamentals remain on 'a solid footing'.

Bharti Airtel fell 1.8 per cent, adding to Tuesday's 0.4 per cent decline on profit-taking after surging 5.1 per cent on Monday.

Insurance companies surged on hopes that the new government may raise the foreign direct investment limit in the sector to 49 per cent from 26 per cent, multiple dealers said.

Max India (MAXI.NS: Quote, Profile, Research) surged 8.7 percent, Reliance Capital (RLCP.NS: Quote, Profile, Research) advanced 5.4 percent and Bajaj Finserv BJFS.NS gained 4.4 percent.

(Reporting by Abhishek Vishnoi; Editing by Sunil Nair)