Sensex sheds 318 points; rupee weakens

In its biggest single-day fall in over three months, the BSE Sensex yesterday plunged by 318 points to close at a nearly two-week low of 29,167.68 as investors cut down exposure amid weak global cues. Consumer durables, auto, FMCG, metal and banking stocks fell the most, while a depreciating rupee against the US dollar also weighed on sentiments.The NSE Nifty also slipped below the 9,100-mark, as the markets remained on a downward path for the third day. Brokers said that the mood was downcast after reports suggested India’s GDP may grow at a slower rate of 6.7% in the current quarter, while cues were negative from the global markets where investors remained cautious following the news of North Korea failing a nuclear test and developments on the US President Donald Trump’s tax cut probability.Global brokerage house Nomura said the overall economic activity is yet to bounce back to the levels seen prior to demonetisation.The Sensex, which had lost 163.54 points in the previous two sessions, dropped another 317.77 points, or 1.08%, to end yesterday at 29,167.68 — its lowest closing since March 10.It saw the biggest one-day slump since December 2 last year when it had lost 329.26 points. Mid-cap and small-cap indices fell 0.95% and 0.90%, respectively, on sustained selling pressure from retail investors.The 50-share NSE Nifty tumbled 91.05 points, or 1.00%, to end at 9,030.45. Among blue-chips, Bharti Airtel suffered the most by diving 3.18% to Rs 338.50. Other major losers included Tata Motors, ITC, ICICI Bank and Bajaj Auto, all of which dropped more than 2%.Besides, M&M, SBI L&T and Maruti Suzuki also lost value. However, Lupin, Wipro, Cipla, Sun Pharma, Dr Reddy’s and Hindustan Unilver ended in the green and cushioned the overall fall of the Sensex.Metal shares lost momentum due to fall in commodity prices globally. JSW Steel, SAIL, Hindalco, Tata Steel, Jindal Steel and Vedanta were down up to 2.86%. Foreign portfolio investors (FPIs) are believed to have sold heavily today. They had bought shares worth a net Rs1,662.72 crore on Tuesday, as per the provisional data.Domestic institutional investors (DIIs) had sold shares worth a net Rs 798.57 crore on Tuesday. Meanwhile the rupee yesterday weakened against the US dollar tracking the fall in global equity markets.The rupee closed at 65.45 — down 0.25% from its previous close of 65.28. The rupee opened at 65.55 and touched a low of 65.57 a dollar.Equities tumbled across Asia after the S&P 500 Index fell the most since Donald Trump’s election as US President, as reflation trades faltered amid uncertainty over prospects for his policies.Traders are awaiting the US Federal Reserve chairwoman Janet Yellen’s speech today for further cues, Bloomberg reported.So far this year, the rupee gained 3.76%, while foreign institutional investors have bought $4.32bn and $1.48mn from local equity and debt markets, respectively.The 10-year bond yield closed at 6.817%, compared to its Tuesday’s close of 6.887%. Bond yields and prices move in opposite directions.Asian currencies were trading mixed. Japanese yen was up 0.29%, Thai baht 0.19%, China offshore 0.08%, Malaysian ringgit 0.08%.However, Philippines peso was down 0.28%, South Korean won 0.27%, Taiwan dollar 0.12%, Indonesian rupiah 0.05%.The dollar index, which measures the US currency’s strength against major currencies, was trading at 99.71, down 0.1% from its Monday’s close of 99.81.