Market review: Sensex slips 120 pts after 2 weeks of gains, IT stocks shine

"The Indian Industrial Production numbers though much in line of street expectations posted a miniscule growth on shorter working days due to the festival holidays in November," Brahmbhat said.

The softer stance of Consumer Price Inflation numbers which eased from 9.6 per cent to 9.55 per cent though positive for the economy but is not enough to allow the RBI for a rate cut action in its upcoming policy meet, he added.

"The WPI numbers in the upcoming week shall decide the leg room for RBI to support the government in its efforts to stem growth in economy by initiating rate cut action."

"The government's measures to contain the twin deficits by cutting down on fuel and other subsidies shall no doubt save the sovereigns ratings but lead to spiralling of Inflation numbers which shall again be weakening for rupee," he said.

The RBI fixed the reference rate for US dollar and Euro at 54.5390 and 72.2945 from 54.8458 and 71.5405, respectively in the last weekend.

The rupee premium for the forward dollar ended mixed on alternate bouts of buying and selling.

The benchmark six-month forward dollar payable in June closed lower at 164-166 paise from last weekend's level of 167-1/2-169 paise, while far-forward contract maturing in December finished higher at 314-316 paise from 309-1/2-311 paise last weekend.

The rupee fell back slightly against Pound Sterling to end the week at 88.23 from preceding weekend's level of 88.21 and also dropped sharply against the Euro to finish at 72.61 from last weekend's level of 71.59.

However, it hardened further against the Japanese Yen to close at 61.65 per 100 Yen from 62.40 last weekend.

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