Nifty falls below 6000 on weak rupee, high inflation

The market has opened in negative terrain today following both weak domestic and global cues.

The BSE Sensex opened 28 points at 20254, Nifty down 18.95 points at 5999.10.

The industry output on Monday came in lower-than-expectation at 2 percent and the consumer inflation came in at 10.09 percent.

[caption id=“attachment_1223637” align=“alignright” width=“380”]  Representational Image. Reuters.[/caption]

Meanwhile, rupee continued its downtrend for the sixth consecutive session on Wednesday as it is heading towards 64 per dollar.The currency fell 19 paise in early trade to 63.90 per dollar as against previous day’s closing of 63.71 per dollar.

According to Himanshu Arora of Religare, dollar is expected to trade higher in the next session due to weak cues from CPI and IIP. “Continued strength in the dollar index, as seen in the past few trading sessions may also underpin dollar against the rupee in domestic market,” he adds.

More from Investing

MSMEs are breaking the traditional convention. Look who’s funding them Scale-up your startup without an investor! Here’s how

He says the range for the day is seen between 63.50-64.15/USD.

Globally, the US markets ended lower on Tuesday after rising bond yields increased debate over how soon the Federal Reserve would start trimming its monetary stimulus. Dow shed 31 points and S&P 500 closed down by 4 points. Fed officials, however, offered diverging views, adding to the uncertainty about the outlook for their easy-money policies.

Asia followed its Wall Street peers , lowering, on the heightened talks of scaling back Fed stimulus weighing on sentiment.

Stocks in news:

Among the top losers are ICICI Bank, SBI, Hindalco, HDFC Bank and Bajaj Auto

Jet Airways is up 3.85 percent after the CCI approved the Jet-Etihad deal on Tuesday.

Reliance Communication is up 3.41 percent. RCom’s second quarter consolidated net profit jumped over six-fold quarter-on-quarter to Rs 675 crore, driven by provision write back.