Sensex Plunges 350 Pts Amid Weakness in Asia, Rupee Below 67/$
Sensex, Nifty see deep cuts after weakness in Asia, sub $30/bbl Brent crude; Infosys rises 5 percent post results.
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Domestic equity markets opened sharply lower following global turmoil after Brent crude fell below $30 a barrel. The 30-share BSE Sensex lost over 350 points at the start of trade before paring some losses to stabilise around 24,500. The 50-share NSE Nifty declined 85.90 points or 1.14 percent to hold the 7,450 mark.
The market breadth was pathetic as about nine shares declined for every share advancing on the Bombay Stock Exchange.
Infosys jumps 5 percent higher after third quarter results beat analyst estimates and the company revised dollar revenue guidance higher.
Tata Steel plunged 4.57 percent after S&P downgraded the stock to ‘BB-’, a low investment grade rating, over persistent subdued operating performance amid subdued demand and low steel prices. Axis Bank, SBI, Tata Motors, BHEL, Bank of Baroda and PNB were down 2.5-3 percent. However, ITC gained.
The rupee declined to 67.04 per dollar mark in the opening trade, the level it saw last on December 15, 2015.
Asia Stocks Wake up to Oil Rout; Brent Below $30
Asian shares skidded on Thursday in the wake of steep losses on Wall Street, while a rout in oil and commodities prices, with crude plumbing 12-year lows, heightened fears about the global economy.
US crude prices were were last down slightly at $30.47 a barrel, not far from Tuesday’s nadir of $29.93, which was their lowest level since December 2003.
Global benchmark Brent tumbled 1.2 percent to $29.94, after marking fresh 12-year lows.
No Respite For China Stocks, Currency
Chinese stocks and the yuan slipped despite the efforts of the authorities, as the gloom enveloping global markets overwhelmed signs that China’s economy is not weakening as fast as some investors had feared.
China’s central bank set a firmer mid-point rate for the yuan, signalling policymakers’ determination to hold the line against expectations of a sustained depreciation of the currency, which nonetheless opened weaker.
China’s main stock indexes fell, with the Shanghai Composite Index trading down 1.3 percent and the CSI300 index off 1 percent, below their September lows. Both are down more than 16 percent for the year so far.
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