Mumbai: Extending losses for the second day in a row, the National Stock Exchange benchmark CNX Nifty dropped by 59 points and settled below the 8,100-mark on Wednesday due to global weakness on fears early hike in interest rates by the US Federal Reserve might squeeze out liquidity.
A falling rupee, which has breached the 61-level against the US dollar, also had a negative impact on the stock market.
Speculation is rife that the US central bank may hike interest rates during its two-day meeting on September 16-17 following improvement in the world's largest economy. Such a move will affect liquidity from the market, mainly emerging ones, as foreign funds will prefer to invest in the US.
FMCG, energy, IT, Services and PSU shares were at the receiving end, while from media and realty stocks attracted good buying support.
Oil market companies (OMCs), too, suffered losses on expectations of a cut in petrol and diesel prices next week.
The market shrugged off positive cues like a fall in crude oil prices below USD 99 a barrel mark and sustained capital inflows.
The 50-share bellwether index moved in negative terrain throughout the day before closing at 8,094.10, down 58.85 points, or 0.72 percent, over the last close.
Top five losers from Nifty were Cairn India 2.66%, Hero Moto 2.43%, BPCL 2.27%, ITC 2% and Infosys 1.84%. Notable gainers were IDFC 2.08%, DLF 1.64%, ICICI Bank 1.58%, Power Grid 1.57% and Sesa Sterlite 1.56%.
Turnover in the cash segment rose to Rs 16,292.73 crore from Rs 15,782.36 crore yesterday. A total of 9,898.29 lakh shares changed hands in 72,76,178 trades, while market capitalisation stood at Rs 93,82,379 crore.
