Mumbai: /b> Indian equities pared losses quite sharply in last couple of hours of trade as both BSE Sensex and NSE Nifty closed marginally lower as compared to more than 1 per cent fall since early trade on Friday. Markets outperformed global peers that may be due to steep fall in crude oil prices, but the rupee's fall beyond the psychologically important 57 a dollar mark has capped the recovery.
The BSE Sensex fell 60.05 points to close at 16,972.51 that recouped 165 points from intraday low amid global sell-off. The NSE benchmark dropped 18.95 points to 5,146.05.
Nirmal Jain of India Infoline feels a lot of negativity has been already built into the price and sentiment. "The worst will be behind us. Crude oil is one of the significant issues for our balance of payment as well as fiscal deficit. Now, the crude has come down significantly and is also looking technically weak. That itself can change our current account deficit as well as fiscal deficit numbers significantly," he explained.
On Thursday, Brent crude fell (below USD 90 a barrel) to lowest level since December 2010 that gained 1 per cent to USD 90.19 a barrel on Friday.
The fall across the globe was led by growth concerns after weak manufacturing data for June (globally), Moody's downgrade of world's 15 biggest banks and mounting worries over Eurozone debt troubles including the size of a bailout needed to save Spain's banking sector.
France's CAC, Germany's DAX and Britain's FTSE were down around 1 per cent. Asian markets too closed lower.
Back home, the Indian rupee touched a record low of 57.30 as against the US dollar that was down by 95 paise to 57.25 per dollar at 15:35 hours IST.
According to Ashok Gautam of Axis Bank, this move was triggered by rating action taken on Thursday by Moody’s on several US and European banks. From here on, the next level that Gautam eyes is 57.75 a dollar.
Private sector lenders ICICI Bank and HDFC Bank rebounded quite smartly in late trade to close marginally higher while their rival State Bank of India fell 1 per cent.
State-owned oil & gas producer ONGC gained 1.5 per cent due to fall in crude oil prices in international market on Thursday. However, Reliance Industries continued to fall since its partner (with 10 per cent stake in KG D6 with BP & Reliance) Niko Resources slashed KG D6 reserve estimates by 80 per cent; the stock was down 1 per cent.
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