Chennai: Stock markets moved sharply lower on Thursday amid a selloff witnessed across sectors and weak global cues. BSE benchmark index Sensex tanked as much as 858 points to touch 35,116 .
The NSE Nifty plummeted 267 points to hit an intraday low of 10,591. The rupee hit another record low, amid weak global cues, boiling crude prices and fears of a widening current account deficit.
Concerns over the Reserve Bank of India (RBI) adopting an aggressive stance in its monetary policy statement due to a rise in inflationary pressure led to erosion in investors’ risk-taking appetite, according to analysts.
Here are things to know about Thursday’s trading session: A selloff across the board dragged the indices lower. On the 50-scrip Nifty index, forty two stocks traded in the negative zone in afternoon. Top laggards included Eicher Motors, Reliance Industries, Hero MotoCorp, Dr Reddy’s, Adani Ports and TCS – trading between 4 per cent and 8.5 per cent lower.
— GoodReturns.IN (@GoodReturnsIN) October 4, 2018
- The Nifty Bank – the NSE’s index comprising banking stocks – was down 1.9 per cent.
- The rupee weakened further to register a new all-time lowof 73.77 against the dollar. That along with concerns on widening of the current account deficit due to soaring crude oil prices worried investors, say analysts.
- Oil prices have reached four-year peaks. Brent – the international benchmark for crude oil – eased 18 cents to $86.11 a barrel on Thursday.
- The RBI Wednesday relaxed its policy on borrowing from overseas to allow state-owned fuel retailers to raise up to $10 billion external debt for working capital needs. It had earlier that it would pump Rs. 36,000 crore into money markets in October.
- Globally, the dollar notched an 11-month top on the yen on Thursday as strong US economic data drove Treasury yields to their highest since mid-2011. Asian stocks were pressured as borrowing costs rose at home.