Sensex, Nifty open in the red; rupee plunges to record low

Benchmark indices opened lower after having been closed on Independence Day. Sensex is trading lower by 183.89 points or 0.49% at 37668.11, while the Nifty is down 56.80 points or 0.50% at 11378.30. Around 326 shares advanced, 326 shares declined and 69 remained unchanged. At the National Stock Exchange (NSE), the broader 51-scrip Nifty, was quoting at 11,390.35 points, down by 44.75 points or 0.39 per cent.  Notably, Rupee fell 43 paise to hit record low of Rs 70.29 against Dollar.

With maximum cuts seen in bank and metals, selling is visible among major sectoral indices. Following a regulatory issue, Kotak Mahindra Bank is down 2 per cent, but Sun Pharma up by 2 per cent.

The Indian rupee dropped to a record low in opening deals on Thursday with investor sentiment affected by a widening trade deficit on the domestic front and the broad rise in the U.S. dollar versus other Asian peers. 

The dollar held near a 13-month peak on Thursday as political turmoil in Turkey and concerns about China`s economic health continued to support safe-haven assets and weighed on emerging market currencies. 

The partially convertible rupee was trading at 70.25/26 per dollar, at 0343 GMT, versus its Tuesday`s close of 69.90/91. Markets were closed on Wednesday for a national holiday.

The rupee hit a record low of 70.32 earlier in the session.

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India`s trade deficit widened to a more-than-five-year high of $18.02 billion in July, the trade ministry said on Tuesday, driven largely by a surge in oil imports.

On Thursday, Asian indices were showing a negative trend. Japan`s Nikkei 225 was quoting in red, down by 0.35 per cent while Hang Seng was down by 0.80 per cent, South Korea`s Kospi was down 0.99 per cent. China`s Shanghai Composite index was trading in red, down by 0.91 per cent.

Overnight, Nasdaq closed in red, down by 1.24 per cent while FTSE 100 was also down by 1.52 per cent at the closing on Wednesday.