Rate-sensitives crack: Banks, realty, auto stocks slip on weak rupee

NEW DELHI: Rate-sensitive stock in sectors such as autos, realty and banks plunged 1-2.5 per cent in morning trade on Tuesday, weighed down by weakness in rupee which plunged to 65 to the dollar in opening trade.

The rupee is now trading not far from its record low of 65.56 reached last week, as the lower house of Parliament approved a plan worth nearly $20 billion to provide cheap grain to the poor.

The partially convertible rupee was trading at 65.21/25 per dollar at 09:04 a.m., sharply below its close of 64.30/31 on Monday.

The BSE Sensex dropped over 200 points, while Nifty slipped below its crucial psychological support level of 5400.

At 09:30 a.m.; the S&P Realty index was trading 1.7 per cent lower, led by losses in Peninsula Land, which was down 4.5 per cent, HDIL plunged by 3.2 per cent, DLF slipped 2.6 per cent and Unitech was trading 2.3 per cent lower.

The BSE auto index slipped 1 per cent, led by losses in M&M, which was down 1.5 per cent, Tata Motors plunged 1.5 per cent, Exide Industries dropped 1.3 per cent and Motherson Sumi was trading 1.2 per cent lower.

The BSE Banking index plunged 2.3 per cent, led by losses in IndusInd Bank, which was down 3.3 per cent, Yes Bank (down 3.2 per cent), HDFC Bank (down 3 per cent) and Punjab National Bank (down 2.3 per cent).

State Bank of India, ICICI Bank and Kotak Mahindra Bank were trading 1-2 per cent lower on the Bombay Stock Exchange.