Stock Market

Sensex, Nifty continue to plunge over 1.5%; IT index, RIL shine


Chillicious Bureau

2:48 pm Market near day’s low

: Equity benchmarks extended fall in last hour of trade with the Sensex down 466.01 points or 1.62 percent at 28331.24 and the Nifty down 157.50 points or 1.78 percent at 8709.20.

About 2017 shares declined against 609 advancing shares on the BSE.

The BSE Midcap and Smallcap indices were down 3 percent and 2 percent, respectively.

2:44 pm HSBC on rupee: Global financial services major HSBC has revised year-end forecast for Indian rupee to 66 from 69, citing “improved domestic backdrop” and said the domestic currency will steadily strengthen against the dollar.

According to HSBC, lower currency volatility has been an important attribute for the rupee and has had the positive effect of boosting confidence and providing a stronger foundation for India to attract long-term investment.

“Considering INR’s relatively low volatility, attractive yields and improving fundamentals, the Indian rupee appears to be one of the most attractive carry currencies on a risk adjusted basis,” HSBC said.

The rupee is hovering around 66.86 a dollar level.

2:40 pm Buzzing: Cairn India and Vedanta shares fell more than 6 percent ahead of Cairn India shareholders’ decision over merger with Vedanta.

2:25 pm Global jitters:
European stocks were sharply lower as investor sentiment was rattled by concerns that the US Federal Reserve could be considering an imminent interest rate hike.

The pan-European STOXX 600 was down 1.89 percent.

Asian shares tumbled after major US indices posted their worst drop since the Brexit vote in June on Friday amid concerns central banks will become less accommodative.

Last week, the European Central Bank (ECB) did not take any further easing measures, instead keeping its monetary policy stance unchanged. This disappointed investors in the region.

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Global weakness and profit booking dampened the market sentiment with the Sensex falling more than 400 points. The rupee also moved towards 67 a dollar level, down 26 paise to 66.93 on stronger dollar after Federal Reserve officials’ statement indicated that the rate hike is likely in a meeting later this month.

The 30-share Sensex was down 407.07 points or 1.41 percent at 28390.18 and the 50-share NSE Nifty down 139.60 points or 1.57 percent at 8727.10. About 1920 shares declined against 669 advancing shares on the BSE.

Four out of Sensex 30 stocks bucked the trend, which are Infosys (1.91 percent), Reliance Industries (0.66 percent), TCS (0.26 percent) and Wipro (0.11 percent). The IT Index gained a percent.

Tata Motors, ITC, L&T, ICICI Bank, SBI, Axis Bank, Adani Ports and M&M were down 2.5-5 percent.

The market will remain shut on Tuesday for Bakri Id holiday.