Finance
The main equity indices Sensex and Nifty fell dramatically on Tuesday following a slow start to trading, pressured down by negative trends in Asian markets.
South Korea’s stock market activated a circuit breaker when the KOSPI fell 9%, resulting in a 20-minute pause in trading.
The Sensex closed at 76,200.68, down 893.39 points or 1.16 percent, while the Nifty fell to 23,824.10, down 278.80 points or 1.16%.
In early trading today, the Sensex reached a high of 77,194.83, up 100.76 points, or 0.13 percent. The Nifty rose to 24,135.50, up 32.6 points or 0.13 percent.
Except for pharmaceuticals and real estate, all Nifty sectoral indices were down. The broader Nifty Smallcap 100 and Nifty Midcap 100 indices declined by 0.6% and 0.75 percent, respectively.
The rupee fell 6 paise to 94.69 against the US dollar, which surged further and lingered at a 13-month high.At the interbank foreign currency market, the rupee began at 94.73 versus the US dollar before recovering somewhat to 94.69, still down 6 paise from its previous close.
“The rupee opened weaker against the US dollar, as mounting expectations of a Federal Reserve rate hike and broad-based dollar strength weighed on Asian currencies. The greenback hovered near a 13-month high, supported by optimism surrounding US-Iran peace negotiations and weakness in major currencies, particularly the British pound and Japanese yen,” Pinky Yadav, Commodity Fundamental Analyst at Choice Broking, said.
“While easing crude oil prices amid progress in US-Iran talks may offer some support to the rupee, the Fed’s hawkish stance and higher inflation outlook are likely to keep gains limited. Meanwhile, India’s infrastructure output growth slowed to 0.5 percent in May, signaling a moderation in economic activity,” Yadav added.
Source: MC
