SENSEX and NIFTY lose big in opening trade

The weakening rupee and rising US$ demand among reasons

Chennai: Market benchmark SENSEX crashed over 1030 points, falling to below 34,000 points in the opening trade this morning. The BSE NIFTY Fifty index slipped over 280 points to fall below the 10,200 mark. The fall came after a global selloff after the rupee hit a record low of Rs74.47 value against the US Dollar.

On Wednesday, the rupee snapped its six-session losing streak to end 18 paise higher at 74.21 against the US dollar after the American currency weakened overseas. Foreign institutional investors (FIIs) sold shares net worth a net of Rs 1,096 crore Wednesday, provisional data showed. Investors remained concerned over sustained foreign capital outflows.

Meanwhile, traders attributed the carnage in domestic bourses to the sell-off in international bourses after US stocks tumbled on heavy correction in tech stocks, fresh concerns over Fed rate hike and looming impact of the US’ trade war with China.

Markets across Asia reported weak openings with Japan’s Nikkei falling 3.41 per cent, Hong Kong’s Hang Seng losing 3.53 per cent, the Singapore exchange going down 2.64 per cent and the Korean bourse plunging 2.28 per cent in late morning deals.