Sensex crashes 792 points as rupee hits 74 against dollar

Sensex and Nifty crashed 792 points and 282 points after the Reserve Bank of India kept key policy rates unchanged and changed its stance to ‘calibrated tightening’ from ‘neutral’. Earlier in the morning trade, Sensex opened 169 points lower from the previous day close of 35,169.16 at 35,000.27. After the closing of the trade, Sensex had fallen to 34,376.99 (2.25 per cent). The NSE Nifty 50 Index declined 2.67 per cent or 282.85 points to the lowest level of 10,316.50.

The 30-share index lost over 1,356.98 points in the previous two sessions on continuously falling value of rupee against dollar and boiling crude oil prices. Sectoral indices led by oil and gas PSUs cracked up to 10.27 per cent after the government announced Rs 2.5 cut on fuel, including Re 1 cut by oil marketing companies. Infrastructure, auto and banking stocks are also among hit during the early morning trade.

Sensex crashes 792 points as rupee hits 74 against dollar

The shares of BPCL (Bharat Petroleum Corporation Ltd), HPCL (Hindustan Petroleum Corporation Ltd) and IOC (Indian Oil Corporation Ltd) were trading lower by up to 24 per cent on nervous selling by investors. The HPCL share is the worst hit among the three as marketing holds the biggest share in its operating income. In the early morning trade, the share of HPCL was trading 24.50 per cent lower at 163.95.

Brokers said investors offloaded their positions, tracking a selloff in global markets as US Treasury surged to multi-year highs on robust economic data and comments from the Federal Reserve, sparking fears of accelerating inflation. Besides, caution ahead of RBI’s monetary policy announcement which expected to hike interest rates by 25 basis points, too, dented sentiments, they added.

Shares of ONGC, Bajaj auto, HUL, ITC, M&M, RIL, Maruti Suzuki, Hero MotoCorp, Adani Ports, HDFC Bank, NTPC, Vedanta, HDFC, HDFC Bank, Tata Steel and Axis Bank tanked up to 11.27 per cent. On the other hand, Sun Pharma, IndusInd Bank, Tata Motors, Infosys, Yes Bank, PowerGrid, TCS and Kotak Bank bucked market trend, and were trading in the green, rising up to 2 per cent. Among other Asian markets, Japan’s Nikkei, Hong Kong’s Hang Seng, Strait Times and Taiwan indices fell up to 1.73 per cent. The US Dow Jones Industrial Average too ended lower on Thursday.

source: businesstoday


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