Sensex extends losses for 3rd day, down 60 pts

Mumbai: The BSE benchmark sensex extended its losses for the third consecutive day by slipping another 60 points to finish at 16,420.05 due to persistent selling mainly in Metal, Auto and Power counters in view of sustained capital outflows from foreign funds amidst weak global cues.

Index heavyweight Reliance Ind (RIL) reversed intraday gains. Another index heavyweight, Infosys fell by 0.82 per cent after the Reserve Bank of India said all foreign-exchange earners have to convert 50 per cent of the total foreign exchange earnings kept in banks into rupees. Indian IT firms derive the lion`s share of revenue from exports.

Foreign institutional investors (FIIs) sold shares worth a net Rs 376.34 crs yesterday as per provisional data from the stock exchanges. Their outflow totaled Rs 1406.13 crore in three trading sessions from May 7 to May 9 as per data from the stock exchanges. The BSE benchmark sensex resumed higher at 16,515.62 and moved up further to a day`s high at 16,671.81, but declined afterwards to 16,377.02 before finishing at 16,420.05, showing a net loss of 59.53 points of 0.36 per cent.

The NSE 50-share Nifty also moved down further by 9.10 points or 0.18 per cent to end at 4,965.70. European stock markets reversed initial gains today on disappointing Chinese trade data. Key benchmark indices in Germany, UK and France declined by 0.13 pct to 1.29 pct.