Reliance Industries, ONGC, Coal India emerge top losers; Sensex cracks over 600 points
Weakening rupee, crude oil price rise, escalation in US-China trade tensions, and uncertainty generated by exit poll verdicts made investors jittery causing the benchmark BSE Sensex to crack over 600 points Monday. The 30-share index dropped 551.74 points, or 1.55 per cent, to 35,121.51 in the opening session. All stocks in the index were trading in the red in the opening trade today.
The NSE Nifty slumped 172.95 points, or 1.62 per cent, to 10,520.75. The Sensex had rallied 361.12 points, or 1.02 per cent, to close at 35,673.25 Friday, and the broader Nifty had jumped 92.55 points, or 0.87 per cent, to 10,693.70 in the previous session.
The exit polls Friday predicted a tight finish between the BJP and the Congress in Madhya Pradesh and Chhattisgarh, and a win for the opposition party in Rajasthan.
On the other hand, the Rupee depreciated 59 paise to 71.40 against the US dollar in early trade Monday at the interbank foreign exchange amid strengthening US dollar against some currencies overseas. The Rupee is at three week low. The rupee opened lower at 71.28 against the dollar and dropped further to 71.41, 59 paise down over its previous close. On Friday, the domestic currency recuperated by 8 paise to close at 70.82 against the US dollar.
Image source: DNA
Impact on oil
Global crude oil prices rose after Opec members and 10 other oil producing nations agreed Friday to cut output by 1.2 million barrels a day in a bid to boost prices. Opec meet and the arrest of Global CFO of Huawei has unnerved global investors. To add more to it, domestic state election results may just be the fuel for a short-term volatility, according to market said.
Brent crude, the international benchmark, was trading 0.68 per cent up at USD 62.09 per barrel. The rupee, meanwhile, depreciated 59 paise to 71.40 against the US dollar in early trade at the interbank foreign exchange amid strengthening of the US dollar against some currencies overseas.
Image source: Reuters