The television screen on the facade of the Bombay Stock Exchange building features BJP prime ministerial candidate Narendra Modi. The Sensex touched a life-time high of 22,853.03 points yesterday.
Reuters/Mumbai
Indian shares ended flat yesterday after hitting record highs for a second consecutive session as momentum waned ahead of the expiry of monthly derivative contracts and on expectations that current levels sufficiently price in fundamentals.
Investors booked profits in recent outperformers such as State Bank of India and Tata Motors, although gains in other sectors such as capital goods helped offset those losses.
Analysts warn markets could be headed for a period of range-bound trading. Derivative contracts will expire on Wednesday while markets will remain closed on Thursday as Mumbai heads to the polls in the on-going general elections.
The benchmark BSE index closed 0.03% lower at 22,758.37, after gaining as much as 0.39% to hit an all-time high of 22,853.03 earlier in the day.
The broader NSE index ended 0.03% down at 6,815.35, having earlier advanced as much as 0.3% to hit a record high of 6,838. Recent outperformers were hit by profit-taking. State Bank of India fell 1.14% after having gained 36% since the end of January to Monday’s close on expectations the central bank would keep interest rates on hold.
Rupee falls further
The Indian rupee hit a one-month low yesterday as continued dollar demand from oil importers and weaker regional currencies kept it under pressure even after the local unit posted its worst single-day fall since March 20 in the previous session.
The partially convertible rupee closed at 60.76/77 per dollar compared with 60.59/60 on Monday.
The unit fell as low as 60.89, its lowest level since March 21, continuing its retreat from an eight-month high of 59.5950 in early April. Meanwhile, emerging Asian currencies eased as China’s yuan fell to its weakest in 14 months.
