Concerns over falling rupee amid weak global markets weighed down market sentiments as the key benchmarkBSE Sensex and NSE Nifty closed 323.82 points and 122.40 points lower at 27,607.82 and 8,372.75, respectively, on Thursday.
In the 50-share Nifty pack, Yes Bank, Cairn India andPunjab National Bank dipped over 5%. On the other hand, Lupin (up 5.55 per cent), ITC (up 3.94 per cent) and BPCL (up 2.02 per cent) remained top gainers on the performance chart of the index.
Alex Mathews, head research, Geojit BNP Paribas Financial Services, said, “Markets open with a downside gap on weak global cues. Chinese stocks tumbled in late trading caused intensified selling in the domestic market.”
Among sectoral indices on the Bombay Stock Exchange (BSE), the BSE Realty index (down 4.13 per cent), the BSE Metal index (down 2.39 per cent) and the BSE Bankex index (down 2.33 per cent), underperformed the Sensex. The BSE FMCG index (up 1.34 per cent) and the BSE Healthcare index (up 0.38 per cent) outperformed the Sensex.
The BSE Midcap index fell 231.18 points or 2 per cent to settle at 11,317.88. The BSE Smallcap index fell 239.88 points or 2.01 per cent to settle at 11,680.81. The decline in both these indices was higher than Sensex’s decline in percentage terms.
Gaurav Jain, director, Hem Securities, said, “Sharp sell-off was witnessed across the globe after the release of FOMC minutes Wednesday night which suggests that Fed can hike rates in September. Continuous fall in commodity prices, rupee weakness, sell-off by foreign portfolio investors and profit booking dampened the sentiment of the investors.”
Shares of Amtek Auto continued to remain in limelight as the stock plummeted on Thursday also, taking its four-day fall to over 66 per cent. After weak quarterly results and high debt to equity ratio, the stock was hit hard today after announcement of it being excluded from futures and options segment. The scrip closed 28.37 per cent lower at Rs 63.75.
On the other hand, shares of pharma major – Lupin surged more than 6 per cent in the day after the company got approval from US FDA for a key anti-cholesterol drug.
The Indian rupee fell to as low as 65.50 to the dollar on Thursday, its lowest since September 2013, tracking losses in Asian currencies after a slump in Chinese equities reinforced concerns about the world’s second-largest economy.
In overseas markets, European stocks edged lower. Earlier during the day, Chinese stocks led decline in Asian markets after the International Monetary Fund signaled that it will not add the yuan to its basket of reserve currencies for at least a year.
US stocks edged lower on Wednesday, after the minutes from the Federal Reserve’s most recent policy meeting revealed that economic conditions for a rate rise are approaching, but stopped short of flagging any plans to begin raising rates next month.
Asian peers ended in red as Hang Seng, Nikkei and Shanghai slid 1.77 per cent, 0.94 per cent and 3.42 per cent.