The BSE Sensex yesterday tumbled over 349 points to close at 27,527.22 on weakening global cues after the latest poll suggested that Republican candidate Donald Trump was slightly ahead of market favourite and his Democratic Party rival Hillary Clinton in the US Presidential polls.
Also, the broader NSE Nifty broke below the 8,600-mark level to close at an over three-month lows. Investors are also waiting the US Federal Reserve’s interest-rate decision.
The 30-share index stayed in the negative terrain for the whole day and settled lower by 349.39 points, or 1.25% – its biggest single-day fall since October 13 – at 27,527.22. This is the weakest closing since October 17 when it had closed at 27,529.97. The gauge had lost 64.90 points in the past two sessions.
The broader Nifty also succumbed to selling pressure and slipped below the 8,600-mark to hit a low of 8,504.85 before ending 112.25 points, or 1.30% down at 8,514, its lowest closing since 21 July.
Oil and Natural Gas Corp was the top Sensex loser, skidding 4.10% to close at Rs277.35, followed by Tata Motors, which fell 3.19% to Rs514.
Others that put pressure included SBI, Sun Pharma, RIL, Bharti Airtel, Dr Reddy’s, Cipla, TCS, Hero MotoCorp, Maruti Suzuki, Asian Paints and ICICI Bank, falling by up to 2.75%.
Meanwhile the rupee weakened marginally against the US dollar tracking the losses in the local equity markets.
The rupee was trading at 66.79 against the US dollar, down 0.1% from its previous close of 66.74. The home currency opened at 66.80 against the US dollar. So far this year, it fell 0.97%.
Traders are cautious ahead of the Federal Reserve’s statement at the completion of its two-day meeting and any new indication that an interest rate hike is likely at the central bank’s December meeting as the US holds its presidential election on November 8.
On Tuesday, a new poll showed that 46% of likely voters support Trump compared to 45% for Clinton after the US Federal Bureau of Investigation (FBI) was said to be planning to review more e-mails related to the Democratic presidential candidate’s private server.
The benchmark 10-year government bond yield was trading at 6.82% – a level last seen on 29 September, compared to Tuesday’s close of 6.819%. Bond yields and prices move in opposite directions.
Foreign institutional investors (FIIs) have sold $811.10mn in debt and bought $6.76bn in equity till date this year.
Asian currencies were trading mixed. Japanese yen was up 0.59%, Taiwan dollar 0.11%, China Renminbi 0.07%, Singapore dollar 0.05%. However, South Korean won was down 0.83%, Malaysian ringgit 0.34%, Indonesian rupiah 0.11%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.412, down 0.29% from its previous close of 97.699.
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