Closing Bell: Sensex Down 642 Points as Crude Prices Singe Markets

Markets faced heavy losses in Tuesday’s intra-day trade

(Photo: Reuters)

Indian equity benchmarks markets plunged for the second-straight session on Tuesday, 17 September, dragged down by high crude oil prices and a depreciating rupee. The BSE Sensex ended 1.73 percent lower at 36,481.09 and the NSE Nifty 50 fell 1.69 percent to 10,817.60. The broader markets represented by the NSE Nifty 500 Index closed 1.72 percent lower.

The BSE index which had opened 0.30 percent lower, at 37,169.46 points in the morning, extended its losses to hit an intra-day low of 36,425.05 on Tuesday afternoon. The broader 50-share NSE Nifty, too, was down nearly 180 points at 2:50 pm.

Both the indices were down to the tune of 1.70 percent.

All the sectoral sub-indices were trading in the red with Nifty Auto, Nifty Metal, Nifty PSU Bank and Nifty Financial Services losing more than a percent each.

Investor sentiment remained weak amid geopolitical uncertainties over the Saudi oil turmoil, US-China trade war and looming global economic slowdown, experts told news agency PTI.

Crude oil benchmark, Brent Futures, surged by almost 20 percent to $71.95 per barrel (intra-day) on Monday after twin drone attacks on Saturday wiped out more than half of Saudi Arabia’s crude supply.

Rupee Weakens Too

Meanwhile, rupee opened on a cautious note and fell 28 paise to 71.88 against the US dollar in early trade on Tuesday amid rising demand for the US dollar vis-a-vis other currencies overseas.

On Monday, Rupee had plunged by 68 paise to 71.60 against the US dollar amid concerns over soaring crude prices following drone attacks on Saudi Arabia’s oil facilities.

Forex traders said the drone attacks on Saudi Arabia's oil facilities have enthused demand for safe heaven assets like the US dollar.