Bourse’s dip persists

Wednesday, 10 July 2013 01:26 -     - {{hitsCtrl.values.hits}}

Reuters: Shares fell to their lowest close in nearly 10 weeks on Tuesday on concerns over the rupee’s weakness and the possibility of further foreign outflows from the country. The main share index declined 0.3% or 15.48 points to 5980.16, its lowest close since 2 May. It has fallen for the past five sessions, shedding a total of 2.6%. “Investors are worried over rupee volatility and the global scenario as cheap funds that were going into frontier markets are not there anymore,” said a stock broker. The rupee has been weakening since early last month as foreign investors exited as they have done from other emerging markets after an improved US economic outlook made US Treasury yields more attractive. The market’s 14-day relative strength index (RSI) on Monday fell in oversold territory at 27.820, below the lower neutral range of 30, Thomson Reuters data showed. Turnover on Tuesday was Rs. 254.3 million ($ 1.94 million), the lowest since 24 June and well below this year’s daily average of about Rs. 1 billion. Foreign investors were net sellers for the first time in five sessions with Rs. 2.43 million worth of shares. In 2013, they have been net buyers of Rs. 15.73 billion.