Sensex tanks over 200 points, Nifty dips below 10,600; rupee hits all-time low
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Vinod Nair, Head of Research, Geojit Financial Services
Weak global cues and rising oil price continued to impact domestic market sentiment while rupee declined to all time low amid concern on inflation and current account deficit. The mid & small cap continued to underperform amid tensions in global trade while short-term investors are using every opportunity to book profits due to F&O expiry. Any intervention from RBI to contain the volatility in rupee, and progressing monsoon will provide some respite to domestic market in the near term.
Markets At Close
The Sensex and Nifty fell for a second straight day on Thursday as investors turned cautious on the expiry of derivatives contracts, while the rupee hit a record low amid intensifying global trade war. The broader NSE Nifty ended 0.77 percent lower at 10,589.10, while the benchmark BSE Sensex closed 0.51 percent lower at 35,037.64.
Market Update
At 2:55 pm, the Sensex was trading at 34,998, down 218.88 points, while the broader Nifty50 was ruling at 10,575, down 95.55 points.
Sensex Heatmap
Source: BSE
Market Breadth Turns Negative
Market breadth, indicating the overall health of the market, turned negative. On the BSE, 594 stocks declined, 302 stocks rallied, while 40 stocks remained unchanged.
Broader Markets Underperform
In the broader market, the BSE Midcap and the BSE Smallcap indices slipped 0.6 per cent, respectively.
Markets At Open
At 9:20 am, the Sensex was trading at 35,182, down 35.09 points, while the broader Nifty50 was ruling at 10,648, down 22.45 points.
Rupee Hits All-time Low
The rupee depreciated by 44 paise to breach its crucial 69 level against US dollar for the first time ever. The heavy sell-off came on the back off stronger dollar and higher oil prices, leading to fears of wider current account deficit and foreign portfolio outflows.
The rupee fell to 69.07 in intraday trade compared to yesterday’s close of 68.63. The local currency had hits its previous all-time intraday low on November 24, 2016 at 68.86 against the dollar. The all-time closing low stands at 68.82, breached on August 28, 2013.
Asian markets flirt with nine-month low on mounting trade war fears
Asian stocks slumped to nine-month lows on Thursday on growing worries the U.S. administration’s approach to trade is harming global economic growth even as it appeared to be modifying its approach to curb Chinese investments in U.S. technology firms. US oil prices hit a 3-1/2-year high as plunging U.S. crude stockpiles compounded supply worries in a market already uncertain about Libyan exports, a production disruption in Canada and Washington’s demands that importers stop buying Iranian crude.
FAST MONEY: Here are key trading ideas for today's trade
Exide Industries (Buy)
Target: Rs 255
Stoploss: Rs 245
- The company entered into a deal with Leclanche, a Swiss company
- The deal is about producing batteries for e-vehicles
Wall Street On Wednesday
US stocks fell on Wednesday on renewed uncertainty regarding the U.S. stance on Chinese investments in American technology companies, reversing gains earlier in the session. At the market open, stocks rose as President Donald Trump said he will use a strengthened national security review panel — the Committee on Foreign Investment in the United States (CFIUS) — to deal with potential threats from Chinese acquisitions of U.S. technology, instead of imposing China-specific restrictions.
The Dow Jones Industrial Average fell 165.52 points, or 0.68 percent, to 24,117.59, the S&P 500 lost 23.43 points, or 0.86 percent, to 2,699.63 and the Nasdaq Composite dropped 116.54 points, or 1.54 percent, to 7,445.09.
The Sensex and Nifty fell on Wednesday to a three-week closing low, as investors turned cautious a day before the expiry of derivatives contracts, while rising oil prices also dampened sentiment. The Sensex settled at 35,217, down 272.93. Nifty ended at 10,671, down 97.25 points. In the broader market, the BSE Midcap and the BSE Smallcap indices underperformed to lose up to 2 per cent.
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