BSE Sensex falls over 500 points on falling rupee, weak global cue
Amid weak global market and rupee rout, Indian market tanks heavily, with the BSE Sensex falling over 500 points or 1.33 percent.
Amid weak global market and rupee rout, Indian market tanks heavily, with the BSE Sensex falling over 500 points or 1.33 percent. The benchmark Nifty50 too shed 1.19 per cent to close at 11,377.75 points. BPCL, Hindustan Petroleum, Eicher Motors, and Power Grid Corporation stocks were the Nifty performers, while Infratel, Bajaj Finance, Titan, Bajaj Financial Services, and Sun Pharma were the drag on the market.
The market was largely negative through the day. In the Nifty 50 index, only 14 stocks advanced, while 36 fell. Nifty Bank, Financial services, FMCG, and automobile stocks nosedived. However, IT stocks performed well. Tata Alexsi, HCL Tech, Tech Mahindra, TCS and Mind Tree were in the positive territory, as rupee fall give these companies the extra edge.
"PM's review meeting over the week-end on economy did not bring out any immediate trigger for the stocks prices to catapult higher. Stocks and forex had high hopes on the outcome and both markets promptly gave up their recent gains,' says VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities. He added, "Metal stocks are bucking the trend and likely to remain on investors’ radar as firm commodity prices are aiding profitability."
The BSE Sensex opened lower today at 38027.81 points over the previous day's close of 38090.64. The 31-scrip index clocked the day's low of 37548.93. Market driver Reliance Industries fell over 2 percent on the BSE after rising to record highs in recent weeks. Heavy selling pressure was witnessed in banking, consumer durables and auto stocks.
Tata Steel, Wipro, IndusInd Bank, Power Grid and Bharti Airtel, while the major losers were HDFC, NTPC, State Bank of India, HDFC Bank and Tata Motors (DVR). Measures taken by the government on Friday to stem the steep decline in the rupee failed to cheer markets. The rupee fell more than 1 per cent to 72.70 against the US dollar.