Sensex crashes 505 points to 37,585 on rupee woes, global worries; Nifty ends below 11,400-mark
After rallying for two sessions, the BSE benchmark Sensex on Monday tumbled over 505 points to slip below the 38,000-level as worries about global trade war and prevailing rupee crisis dampened investors mood despite the government announcing steps to stem a steep fall in the Indian currency
Mumbai: After rallying for two sessions, the BSE benchmark Sensex on Monday tumbled over 505 points to slip below the 38,000-level as worries about global trade war and prevailing rupee crisis dampened investors mood despite the government announcing steps to stem a steep fall in the Indian currency.
The broader Nifty too nosedived over 137 points to end below the 11,400-mark. Subdued Asian and European markets due to escalating trade war between the US and China mainly led to a caution on domestic bourses, brokers said. The government Friday announced an array of steps, including removal of withholding tax on Masala bonds, relaxation for FPIs and curbs on non-essential imports to contain the widening CAD and check the rupee fall.
The Indian currency once again breached the 72-mark to hit a low of 72.69 (intra-day) against the US dollar. The BSE 30-share barometer, after a lower start at 38,027.81, quickly cracked the 38,000-mark to hit a low of 37,548.93 on across-the-board selling in recent gainers and finally settled 505.13 points, or 1.33 percent, down at 37,585.51.
The gauge had gained 677.51 points in the previous two sessions.
The NSE Nifty hit a low of 11,366.90 and finally ended 137.45 points, or 1.19 percent, down at 11,377.75.
Financials, led by HDFC twins HDFC Ltd and HDFC Bank, emerged as the biggest draggers of the session, pulling down the key indices from their key levels.
Meanwhile, on a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 1,090.56 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 115.14 crore on Friday, provisional data showed.
Gold Rush: How jewellers are benefitting from RBI’s decision to withdraw Rs 2000 notes
The gold market in India is seeing a spurt in sales and it can thank the RBI for it. The central bank’s decision to withdraw the Rs 2000 note from circulation by 30 September has prompted people to buy more gold – with most stores reporting a 20 per cent rise in purchases
India scraps the Rs 2000 note: Will this affect the economy?
The Rs 2000 note will remain legal tender but citizens have been asked to deposit or exchange these notes by 30 September. Analysts say this time the move is expected to be less disruptive as a lower value of notes is being withdrawn over a longer period of time
Why has RBI withdrawn Rs 2000 notes? How is this different from demonetisation?
The RBI has decided to withdraw Rs 2000 denomination of banknotes from circulation under the clean note policy. People have been advised to deposit the currency, which was introduced six years ago, into their bank accounts or swap them for notes of other denominations at any bank