Markets crash on weak
The equity benchmark Sensex on Thursday hit its lowest level in three months, crashing over 806 points to close below the 35,200level as concerns over weakening rupee and rising crude oil prices spooked investors
Sensex plunges 806 pts, Nifty down 259 pts as rising oil prices also hit sentiment
Mumbai: The equity benchmark Sensex on Thursday hit its lowest level in three months, crashing over 806 points to close below the 35,200-level as concerns over weakening rupee and rising crude oil prices spooked investors.
Similarly, the NSE Nifty cracked the 10,600-level by falling 259 points. The rupee plunged to an all-time low (intra-day) of 73.81 to the US dollar and global crude oil prices touched a four-year high of $86 a barrel, triggering worries for India on the macro-economic front.
The weakness in other Asian markets and a lower opening of the European shares also added to negative sentiments on the domestic bourses.
A sharp plunge mainly in healthcare, IT, oil&gas, banking and auto pulled the Sensex lower by 806.47 points, or 2.24 per cent, to 35,169.16 points, extending losses for the second straight day.
Intra-day, it hit a low of 35,022.12. This is the lowest closing since July 2 when the index had settled at 35,264.41.
The gauge had lost 550.51 points Wednesday on rupee woes coupled with surging crude oil prices and unabated foreign fund outflows.
In the process, more than Rs 5 lakh crore has been wiped out in the last two trading sessions from the overall investors' wealth.
The 50-share NSE Nifty also cracked the 10,600-level by falling 259 points, or 2.39 per cent, to close at 10,599.25 after hitting a low of 10,547.25.
Besides, traders have been cautious ahead of the outcome of the ongoing three-day RBI policy meet that began Wednesday.
Also, weak cues from other most Asian markets as high US yield and upbeat economic data led to fear that investors would move to the US, accelerating selling pace on the domestic bourses.
According to analysts, the equity benchmark indices have fallen nearly 10 per cent from peak levels attained in August, led by weak domestic sentiments, global uncertainties, depreciating rupee and boiling crude oil prices.
With rupee and crude oil showing no signs of stability, weakness is likely to continue in the coming sessions, analysts said.
The international benchmark Brent crude prices hit a four-year high of $ 86.10 a barrel while WTI at $ 76.23 a barrel.
Stocks of tyres, paint and chemical companies turned distinctly weak as crude oil surged to near four-year high.
Crude is main raw material used by these industries. Selling pressure was broad-based, while IT, teck, realty and oil & gas and auto stocks were the worst hit.
Foreign portfolio investors (FPIs) sold shares worth a net of Rs 1,550 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 1,402 crore Wednesday.