Sensex, Nifty Post Worst Day In Nearly Six Months On Rupee Woes
Closing Bell: Sensex, Nifty Post Worst Day In Nearly Six Month
Indian equity benchmarks posted their worst day in nearly six months as rupee depreciated to record low amid President Donald Trump’s threat to escalate the trade war with China.
The S&P BSE Sensex fell 1.2 percent or 468 points to 37,922 and the NSE Nifty 50 index tumbled 1.3 percent or 151 points to 11,438.
On Friday, U.S. President Donald Trump doubled down on his threats to impose higher tariffs on China’s goods, saying he’s ready to tax all imports "at short notice."
Multiple factors like rupee weakness and threat of trade war escalation between U.S. and China led to a selloff in the markets amid expensive valuations, AK Prabhakar, head of research at IDBI Capital Market told BloombergQuint over phone.
Eighteen of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Auto index’s 1.75 percent drop. On the flipside, S&P BSE IT index was the lone gainer.
Government Is Said To Ask RBI To Ramp Up Efforts To Soften Rupee Drop
The government has asked the central bank to bolster efforts to support the rupee, Asia’s worst-performing currency of the past month, people familiar with the matter said.
Government officials communicated last week with the Reserve Bank of India on the need to intervene more aggressively in the market to support the rupee, the people said, asking not to be identified as the information is not public. They also discussed the need for other measures including deposit schemes for non-resident Indians, the people said.
Ricoh India Suspended From Trading
Shares of the Delhi-based automation equipment maker were suspended from trading.
The company informed exchanges that it is currently under Corporate Insolvency Resolution Process (CIRP) as per Insolvency and Bankruptcy Code.
Keeping in view the same, Ricoh India Limited is not in a position to honour its obligation to pay 7 percent half yearly interest on Rs 200 Crores Non-Convertible Debentures issued by the company to Ricoh Asia Pacific Pte Limited, the company added in the exchange notification.
Edelweiss Struggles Amid block Deal
- Edelweiss has 23.5 lakh shares change hands in a block. Stock down 1.7 percent at Rs 257.60.
Buyers and sellers were not immediately known
Rupee Off Day's Low After Hitting Record Low Of 72.67/$
Rupee came off intraday low levels after it hit record low of 72.6738 per dollar.
The domestic unit came off intraday low levels and was down 0.7 percent at 72.23 per dollar.