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Thursday, June 28, 2018

Sensex suffers more losses as rupee hits record low, breaches 69-mark; Nifty drops by 31 points; bank, auto stocks fall

Mumbai: The benchmark Sensex fell over 90 points in early trade today after the rupee sank to a lifetime low of 69.10 against the US dollar amid firming crude oil prices.

There was also caution among investors on the expiry day of the June series derivatives contracts, brokers.

Sectoral indices led by realty, capital goods, PSU, oil and gas, infrastructure, banking and power remained in the negative zone, declining up to 1.43 percent. Brokers said market sentiment was fragile following the rupee hitting a new low of 69.10 against the dollar amid rising crude oil rates.
Brent crude was trading at nearly $78 a barrel in Asian trade today. Besides, lingering trade war concerns between the US and China accelerated selling on the domestic bourses, they added.
Representational image. PTI
Representational image. PTI
The laggards included NTPC, Coal India, L&T, Hero MotoCorp, ICICI Bank, Power Grid, SBI, Tata Motors, Adani Ports, Asian Paints, HDFC Ltd, Maruti Suzuki, Yes Bank and Bajaj Auto, falling up to 2.48 percent.
Bucking the trend, stocks of software exporter such as Infosys, TCS and Wipro were trading higher by up to 2.12 percent, largely supported by a weak rupee.
In Asia, Japan's Nikkei was down 0.20 percent, while Hong Kong's Hang Seng index rose 0.44 percent in early deals. Shanghai Composite Index too was up 0.20 percent.
The US Dow Jones ended lower by 0.68 percent in yesterday's trade.
Rupee sinks to record low vs US dollar
The rupee collapsed to a lifetime low of 69.10 against the US dollar by plunging 49 paise in early trade today as rising crude oil prices deepened concerns about the country's current account deficit and inflation dynamics. Consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices kept the rupee under pressure. At the interbank foreign exchange market, the rupee opened at 68.87 a dollar against 68.61 previously and sank to 69.10 in morning deals, falling 49 paise. Global oil prices have climbed after the US asked its allies to end all imports of Iranian oil by November. Concerns over supply disruptions in Libya and Canada also pushed prices higher. Higher crude oil prices and a declining rupee are a double whammy for India, forex dealers said.

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