Weakness in the rupee continued to cast its shadow on market as the benchmark CNX Nifty dipped another 23 points and fell below the 5,500 mark briefly in a choppy session on the National Stock Exchange (NSE) today.
Muted economic growth prospects and selling in select stocks weighed heavily on the market, which, however, managed to hold on to the 5,500 mark.
Renewed uncertainty about the US Federal Reserve tapering its easy money policy earlier-than-expected and continued sell-off on the Wall Street further dampened sentiments across Asia, including India.
The fresh weakness in the rupee stoked concerns that RBI may use all means to prevent currency depreciation, including further monetary tightening measures, and in the process hurt growth, traders said.
After two days of gains, the Indian unit tumbled 53 paise to a fresh closing low of 61.30 against the dollar.
After a weak start against the backdrop of global sluggishness and tracking the rupee weakness, the market remained under intense selling pressure.
However, the key index rebounded smartly to trade in green briefly in late afternoon, before succumbing to fresh selling.
Firm buying in financial stocks, the most beaten down sector in the last few sessions, along with energy, metal and capital goods shares capped the slide. FMCG, technology, auto and healthcare stocks witnessed heavy unwinding.
Elsewhere in Asia, stocks fell to multi-month lows with Japan's Nikkei index sliding by a massive 4 per cent on the back of strengthening yen amid uncertainty over the Fed's bond-buying programme.
The 50-share Nifty fluctuated between a high of 5,561.45 and a low of 5,486.85 before ending 5,519.10, a loss of 23.15 points, or 0.42 per cent.
Lupin, HCL Tech, HDFC, Sun Pharma, Asian Paints, TCS, ITC, Grasim, Bajaj Auto and L&T were the key Nifty losers. Dominant gainers included Tata Power, DLF, BPCL, NMDC, Tata Steel, Ranbaxy, RInfra, SBIN, JP Associates and Sesa Goa.
Turnover in the cash segment jumped to Rs 12,346.12 crore from Rs 10,927.42 crore yesterday. A total of 7,317.49 lakh shares changed hands in 68,41,694 trades. The market capitalisation stood at Rs 58,77,857 crore.
