Sensex down 70 points, rupee loses 29 paise
By Our Market Bureau | 04 May 2004
Mumbai:
The BSE Sensex lost 70 points, the Indian rupee lost 29
paise against the US dollar and the government securities'
prices were volatile in a 40-paise range.
The rupee opened at Friday's closing level of 44.52/53, but soon followed the Sensex. According to dealers, FIIs selling in the equity market created nervousness leading to companies frantically buying dollars for import payments. Banks were also buying dollars to cover their short positions. With uncertainty over the poll outcome still in the air, the Indian currency lost as much as 50 paise intra-day to touch the 45-mark in its value against the dollar.
However,
due to some dollar selling by the central bank the currency
gained some ground to close at 44.81/84, 29 paise down
from the previous close.
According to brokers, most of the selling in today's trading
session was by FIIs. However,
there was buying at lower levels in most of the index
stocks. Some players, including FIIs, are also said to
be offloading their holdings ahead of the next phase of
elections.