ADVERTISEMENT

Sensex Choppy As Stronger Rupee Hits Exporters

Sensex Choppy As Stronger Rupee Hits Exporters

Indian shares edged lower on Thursday, heading for a second session of declines in eight, as a stronger rupee hit exporters and investors booked profits after indexes rose to the highest since late October during the week.

Indian stock markets have surged around 20 percent since they hit a near two-year low on Feb. 29, on the back of hopes triggered by a recovery in earnings and improving economic data.

The country's gross domestic product expanded at a stronger-than-expected rate of 7.9 percent year-on-year in the March quarter, extending India's lead as the world's fastest growing large economy, data on Monday showed.

"We have come across over retracement in the past five-six days. The market is doing sideways consolidation. After two-three days of consolidation, the market will again bounce back," said Shrikant Chouhan, Senior VP, Technical Research at Kotak Securities.

"A lot of stocks are far away from their recent lows. It is not overbought," added Chouhan.

The broader NSE Nifty was down 0.14 percent at 8,168.35 as of 0810 GMT and the benchmark BSE Sensex was 0.09 percent lower at 26,690.36, after both indexes on Wednesday hit their highest since late October.

Shares of drug makers Sun Pharmaceutical Industries Ltd, Aurobindo Pharma Ltd and Lupin Ltd fell more than 1 percent after the rupee strengthened against the dollar.

Some major IT stocks were also among the prominent losers as Wipro Ltd slid about 3 percent and HCL Technologies 2 percent.

Two-wheeler manufacturer Bajaj Auto Ltd's stock fell as much as 2 percent to become the top loser in the NSE's Auto index after the company reported weak May sales.

Shares of engineering and construction firm Punj Lloyd Ltd fell to a record low after a UK commercial court ordered its unit to pay $26.2 million to International Finance Corp for its claims.

Coal India Ltd's shares were up 3.60 percent and were among the top gainers, heading for the biggest weekly percentage gain in two years after the company raised coal prices.
 

© Thomson Reuters 2016