Sensex closing Thursday

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.

  1. The Nifty Bank – the NSE’s index comprising banking stocks – was down 1.9 per cent.
  2. 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.
  3. Oil prices have reached four-year peaks. Brent – the international benchmark for crude oil – eased 18 cents to $86.11 a barrel on Thursday.
  4. 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.
  5. 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.