Sensex slips Over 650 Points, Rupee Weakest Since November 20
Domestic stock markets had a gap-down start on Monday as investors turned jittery over exit poll results ahead of the outcome of state elections. The S&P BSE Sensex started at 35,204.66 and the Nifty50 barometer of the National Stock Exchange (NSE) was at 10,508.70 against their last closing levels of 35,673.25 and 10693.70 respectively. At 9:55 am, the 30-share Sensex was at 35,023.98, down 649.27 points or 1.82 per cent and the 50-scrip Nifty was at 10,498.10, with a loss of 195.60points or 1.83 per cent. All 50 Nifty stocks and the entire 30-share Sensex pack plunged.
Here are 10 things to know about this big story:
At the time of writing this report, the Sensex had cracked as much as 657.17 points to hit an intraday low of 35,016.08 and the Nifty as much as 207.7.4 points to hit an intraday low of 10,486.
Trading between 2.48-3.72 per cent lower, Indiabulls Housing Finance, Adani Ports, Bajaj Finserv, Reliance Industries, and Mahindra and Mahindra were the top five Nifty losers.
All sectors traded in the red led by losses in banks, pharma and metal stocks.
Exit poll results and trade war worries pulled the markets today, said Head of Research, IDBI Capital. “Share market today reacted to global trade war and exit poll results. But if the exit polls results turn out to be true, more correction in markets is on cards,” he said. On Friday, exit polls showed mixed results for Prime Minister Narendra Modi’s ruling party at the recently held crucial state elections.
In the currency market, the rupee fell to 71.41 to the dollar, the weakest since November 20 and down from Friday’s close of 70.80, reported Reuters.
In the bond market, the 10-year benchmark bond yield rose to 7.50 per cent from 7.46 per cent, the Reuters report stated.
Global stocks extended their slump on worries over slowing growth and fears that a fresh flare-up in tensions between Washington and Beijing could quash chances of a trade deal.
MSCI’s broadest index of Asia-Pacific shares outside Japan slid 1.4 per cent to a near three-week low, reported news agency Reuters. S&P futures fell 0.8 per cent and Dow futures lost 0.8 per cent in the Asian day.
In commodity markets, oil prices rose, extending gains from Friday when producer club Organisation of the Petroleum Exporting Countries and some non-affiliated producers agreed a supply cut of 1.2 million barrels per day (bpd) from January. Brent crude rose 0.8 percent to $62.13 per barrel.
According to provisional NSE data, foreign portfolio investors sold while domestic institutional investors bought net shares worth Rs. 817.4 crore and Rs. 242.56 crore respectively, on Friday. (With agencies inputs)
Rupee fell to 71.41 against the dollar
10-year benchmark bond yield rose to 7.50% from 7.46%
On Friday, exit polls showed mixed results for PM Modi’s party
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