Sensex Falls For Third Day, Rupee Slumps To 3-Month Low Against US Dollar

Public sector banks finally saw some buying today with the sectoral index Nifty PSU Bank ending in the green.Stock markets fell for the third session in a row, with Sensex ending 71 points lower at 33,703. Nifty edged 18 points lower to 10,360. On the other hand, the rupee fell sharply today to a three-month low of 64.85 against the US dollar.

On Friday, the rupee had ended 30 paise lower at 64.21 against the US dollar on rising global crude prices and worsening trade deficit. The currency markets were closed yesterday. In recent trade, rupee was at 64.78 against the US dollar.

Banking, capital goods and healthcare stock led the decline today. Public sector banks finally saw some buying today with the sectoral index Nifty PSU Bank ending in the green, snapping six sessions of losing streak. But overall market sentiment continues to remain weak, say analysts.

“There has been a sense of negativity among market participants (after the fraud) and this has shattered the confidence for PSU banks,” said Saurabh Jain, assistant vice president of research at SMC Global Securities
IT stocks attracted some buying today. Portfolio shuffling, together with expectations of stable earnings, is prompting investors to flock in the IT pack, said Jain of SMC Global Securities.

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