Manic day for Sensex, closes down by 550 pts; Reliance Industries falls over 2 pct
The Indian stock market saw another rout on Wednesday as the rupee collapsed to a new low amid surging crude oil prices and foreign fund outflows.
The Indian stock market saw another rout on Wednesday as the rupee collapsed to a new low amid surging crude oil prices and foreign fund outflows. To the concern of investors, BSE Sensex plunged over 550 points today to slip below the 36,000, hitting a low of 35,911.82 points, 1.51 percent down. Sensex settled at 35,975.63 at the end of the day. Most of the Nifty50 stocks fell on negative market sentiment with only 14 shares advancing and 36 falling. On the NSE, Nifty50 fell heavily to settle t 10,858.25 points, 1.36 percent down.
However, there was more than just some relief for investors exposed to stocks on BSE SmallCap, which ended in the green at 14,424.41 points, 29.18 up.
VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities said, "RBI refused to open a special window for oil marketing companies affected market sentiments. Rupee touched a new low of 73.40 to a dollar. Sensex lost 550 points or 1.3% and fell to lowest level in the current downturn. Automobile stocks were battered as fears of margin compression came to fore."
YES Bank, Hindalco Industries, Indiabulls Housing Finance, Hindustan Petroleum and Vedanta were the gainers on the NSE. On the other hand, M&M, Eicher Motors, Infratel, TCS,and Axis Bank stocks lost heavily. Reliance Industries stock fell 2.13 percent on the BSE to close at 1205.30. Investors have shown caution ahead of three-day RBI policy review beginning Wednesday. Investors are eagerly waiting for the Monetary Policy Committee (MPC) move on policy rate.
The rupee fell to an unprecedented levels below 73-mark for the first time to hit 73.41 (intra-day) against the US dollar. Brent crude oil too witnessed a surge to reach at 85 a barrel. Mixed Asian markets trend and weak global cues also dragged the Indian market down, creating selling pressure on bourses.
Foreign institutional investors sold net Rs 1,842 crore worth share, while domestic institutional investors bought equities worth Rs 1,805 crore on Monday, provisional data showed. The market was closed on Tuesday on account of Gandhi Jayanti.