Sensex sheds 509 points; Rupee slides further

RSTV Bureau

sensex-down-400x265Market benchmark BSE Sensex crashed 509 points to close at more than one-month low of 37,413.13 due to heavy losses in metal, auto and financial stocks as investors fretted over heightened global trade war concerns.

Besides, the rupee hit yet another new lifetime low of 72.73 against the dollar (intra-day) at the forex market, which also triggered selling in equities pace towards the close.

Amid continuous foreign capital outflows, the 30-share barometer gained over 121 points at the outset on value-buying in select bluechip stocks, but fell back after selling pressure gathered momentum.

The BSE barometer closed the day with a hefty fall of 509.04 points or 1.34 per cent at 37,413.13. This is the weakest closing since August 2 when it had ended at 37,165.16.

It had lost 467.65 points in the previous day.

The 50-share NSE Nifty cracked below the 11,300-mark by falling 150.60 points or 1.32 per cent at 11,287.50. Intra-day, it shuttled between 11,479.40 and 11,274.

Investors turned cautious as trade war concerns between the US and China escalated and a persistent weakness in the rupee became lingering concerns leading to volatility in the market, brokers said.

Continuing its slide, the rupee Tuesday hit yet another record low of 72.73 against the US dollar, falling 28 paise in late afternoon trade on strengthening American currency as crude oil prices went past the USD 78 a barrel mark.

Besides, unabated foreign fund outflows, sharp plunge in domestic equities with the benchmark Sensex crashing by over 500 points, too, weighed on the domestic unit, dealers said.

The rupee Tuesday opened on a positive note by inching 20 paise higher at 72.25 against the US dollar amid increased selling by banks and exporters.

The currency, however, failed to sustain strength and weakened to hit a fresh lifetime low of 72.73, down by 28 paise over its previous closing of 72.45. It breached its previous record low (intra-day) of 72.67 hit Monday.

There were no signs of change in trading preference of foreign portfolio investors who sold shares worth a net of Rs 841.68 crore. Domestic institutional investors (DIIs) also offloaded equities worth a net of Rs 289.66 crore Monday, according to provision data.

Meanwhile, the BSE Sensex plunged 509.04 points, or 1.34 per cent, to close at 37,413.13 in Tuesday’s session.

(With inputs from PTI)