Sensex Slips 200 Pts, Nifty Below 7,800; ICICI Bank Stock Plunges
Cautious start on Dalal Street as rate sensitive stocks see sharp cuts. ICICI Bank is the biggest drag on Sensex.
Domestic stock markets opened in the red tracking the weakness in global markets. The Sensex slipped nearly 200 points while the Nifty broke below the 7,800 mark.
The midcap index outperformed but small caps faced the same drubbing as the large cap stocks.
Banks, auto and IT sectors led the losses on the Bombay Stock Exchange while consumer durables, metals and IT stocks were mostly in the red.
ICICI bank was the biggest loser on the Sensex, followed by NTPC, Adani Ports, Dr Reddy’s, Bharti and Wipro. Pharma stocks like Lupin and Cipla, Reliance, Coal India were trading in the green.
Rupee Opens Lower
Rupee weakened by 8 paise to 66.41 against the dollar in early trade on increased demand for the American currency from importers and banks. Dealers said a firm dollar against some global currencies overseas and a lower opening of the domestic equity market also weighed on the rupee.
The rupee had recovered by 19 paise against the American unit to close at 66.33 in Friday’s trade on fresh selling of dollars by banks and exporters in view of weaker greenback overseas.
Asian Shares Slip, Nikkei Skids as Yen Strengthens
Asian shares fell, uninspired after a downbeat day on Wall Street and led by a plunge in Japan’s Nikkei after the dollar notched a fresh 18-month low against the yen.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.4 percent, after Wall Street marked losses following a spate of disappointing earnings.
Adding to the subdued sentiment, a survey released on Sunday showed that activity in China’s manufacturing sector expanded for the second month in a row in April but only marginally, raising doubts about the sustainability of a recent pick-up in the economy.
Markets in Hong Kong and China were closed.
Japan’s Nikkei stock index skidded 3.6 percent, as investors reacted to the yen’s recent galloping gains.
(With agency inputs)
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