Donald Trump pulls out of Iran nuclear deal: Sensex slips 82 points on weak global cues, rupee plunges by 37 paise

Mumbai: The BSE Sensex fell over 82 points in early trade today on weak global cues after President Donald Trump pulled the US out of the landmark Iran nuclear deal, fanning fears of an escalation in geopolitical tensions.

Crude oil prices zoomed past $76 per barrel mark amid foreign capital outflows and depreciating rupee. Asian shares ticked down as renewed US sanctions on Tehran were seen as disruptive for oil supplies.

The 30-share Sensex fell by 82.12 points, or 0.23 percent to 35,134.20. Sectoral indices led by oil and gas, PSU, banking, realty, auto, capital goods and power declined by up to 0.83 percent. The Sensex had gained 300.94 points in the previous two sessions.

The 50-share NSE Nifty also slipped below the 10,700-mark by shedding 27.95 points, or 0.26 percent, to 10,689.85.

The laggards were ICICI Bank, HDFC, SBI, Axis Bank, Bharti Airtel and Adani Ports, falling up to 1.46 percent. However, IT stocks spurted after the rupee depreciated against the dollar. TCS rose 0.86 percent, Infosys 0.59 percent and Wipro 0.06 percent.

Brokers watching movement of stocks. Reuters

Brokers watching movement of stocks. Reuters

Meanwhile, on a net basis, foreign institutional investors (FIIs) sold shares worth Rs 97.15 crore, while domestic institutional investors (DIIs) bought shares to the tune of Rs 923.25 crore in yesterday's trade, provisional data showed.

Among other Asian markets, Hong Kong's Hang Seng shed 0.04 percent, while Shanghai Composite Index lost 0.16 percent in early trade. Japan's Nikkei fell 0.43 percent.

The US Dow Jones Industrial Average, however, edged up 0.01 percent in yesterday's trade.

Rupee plunges 37 paise against dollar

The rupee plunged by 37 paise to 67.45 against the US dollar in early trade today following surging demand for the greenback as crude oil prices zoomed past USD 76 per barrel level amid foreign capital outflows.

Forex dealers said the dollar strengthened against major global currencies overseas as crude oil prices rallied and pushed Treasury yields higher after US President Donald Trump pulled out from the international nuclear deal with Iran.

Early losses in stock markets and demand for the US currency from importers also weighed on the rupee, they added. Yesterday, the rupee gained five paise to 67.08 against the US currency on suspected RBI intervention and stray dollar demand.

Meanwhile, the benchmark BSE Sensex fell 82.12 points, or 0.23 per cent, to 35,134.20 in early trade today.


Updated Date: May 09, 2018 10:34 AM

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