Sensex Slumps 200 Points, Nifty Below 7,600 as Banks, Auto Drag
Interest rate sensitive stocks dragged the Indian stock market followed by consumer durables and technology stocks.
Indian stock markets opened flat but quickly saw substantial losses, tracking the caution in Asian shares. Sensex slumped over 200 points while the Nifty failed to hold the 7,600 mark.
Interest rate sensitives dragged the index followed by consumer durables and technology stocks. Pharma was the only sector that saw any meaningful gains. Maruti was the top loser on the Sensex, followed by HDFC, Infosys, ITC, ICICI Bank. Pharma counters like Lupin, Dr Reddy’s, Cipla and Sun Pharma were among the top gainers.
Rupee Gains on Dollar Selling
Rupee strengthened by 14 paise to 66.52 against the US dollar in early trade on fresh selling of the American currency by exporters. Besides, the dollar’s weakness against some currencies overseas supported the rupee, dealers said.
However, fresh foreign fund outflows and a lower opening in the domestic equity market, restricted rupee’s gain.
The rupee had dropped 20 paise against the US dollar to end at 66.66 against the greenback on Wednesday on persistent dollar demand from banks and importers amid fresh foreign capital outflows.
Yen Surge Squeezes Nikkei, Oil up as Dollar Slips
The yen powered to 17-month peaks, trampling Japanese exporter stocks in the process, while a broadly soft dollar gave extra legs to a rally in oil prices.
The profit-eroding rise in the yen kept the Nikkei near flat for the day. The index has shed more than 7 percent in the past two weeks and weighed on sentiment across Asia.
Markets in China, Taiwan and South Korea were all lower, while MSCI’s broadest index of Asia-Pacific shares outside Japan was up a whisker.
(With agency inputs)
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