Indian stocks extended their decline on Tuesday with the Sensex falling 0.4% to end at 38,157.92, while the broader Nifty fell 0.54% to 11,520.30, dragged down by FMCG and banking stocks as the rupee extended declines to a record low and oil prices rose sharply.
Among FMCG stocks, ITC fell 1% while HUL declined 2.8%. SBI fell 3.2%, IndusInd Bank declined 2.3% and ICICI Bank dropped 1.7% to be among top losers. IT stocks continued to outperform – TCS, Infosys and Wipro rose between 1.5% and 2.5% – as rupee hit a fresh low.
Rupee breached 71.50 against US dollar in afternoon trade. So far this year, the rupee has weakened 10.5%, while foreign investors have sold $691.50 million and $5.65 billion in equity and debt markets, respectively.
Brent was at $79/bbl putting pressure on oil marketing companies and the domestic retail fuel price.