Concerns over falling rupee amid weak global markets weighed down market sentiments as the key benchmark BSE 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 and Punjab 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.
Markets through the day
2.57 pm: Sensex down 314 points at 27,616. Nifty was down 126 points at 8,369. European stock markets extended their losing streak on Thursday, with benchmark indices in Frankfurt and London hitting seven-month lows as fears of a global slowdown took hold.
2.04 pm: There were more than two losers against every gainer on BSE. The BSE Midcap index was down 1.16 per cent. The BSE Smallcap index was down 1.30 per cent.
1.38 pm: Sensex down 235.79 points at 27,695.85. Nifty down 86.05 points at 8,409.10. Realty stocks down nearly 4 per cent. Metal and IT stocks down over 2 per cent.
1.20 pm: The BSE Sensex slid 200 points at 27,729. Metal, realty and information technology stocks were trading down over 2 per cent.
NSE Nifty was down 80 points at 8,416.
12.43 pm: Infosys is among the Sensex losers, down over 3 per cent, ahead of a major announcement at 5 pm today. The share price was trading 3.27 per cent lower at Rs 1,137 on BSE. Sensex was down 45 points at 27,886. Nifty was down 29 points at 8,465.
11.12 am: The market breadth indicating the overall health of the market was weak. On BSE, 963 shares declined and 1330 shares rose. A total of 89 shares were unchanged. Sensex was up 10 points at 27942. Nifty was down 6 points at 8,489.
10.30 am: The BSE Sensex was down 60 points at 27,871.
10.24 am: Sun Pharmaceutical Industries shares jumped over 3 per cent in the morning trade on Thursday after the company informed stock exchanges on August 19 (post market hours) that it has got USFDA approval for acne drug. The share price of the company was trading 3.58 per cent higher at Rs 960.40.
9.56 am: The BSE Sensex and NSE Nifty were down 17 points and 19 points at 27,914 and 8,476.
9.26 am: Shares of Amtek Auto crashed further 31.69 per cent and 37.47 per cent to Rs 60.90 and Rs 55.65 on NSE and BSE, respectively. Shares of a mid-sized auto ancillary company have been under pressure on continued worries over reports of liquidity issues at the company. NSE on August 18 announced that the bourse has decided to exclude Amtek Auto stocks from its equity derivatives segment.
Group company Castex Technologies slumps to daily lower limit for 28th consecutive session.
9.23 am: Triggered by weak global cues, the BSE Sensex and NSE Nifty plunged 66 points and 20 points at 27,868 and 8,475, respectively.
The key benchmark index BSE Sensex opened 27.53 points higher at 27,959.19 on Thursday while the NSE Nifty opened 24.1 points lower at 8,471.05.
Shares of information technology, power and auto were trading in red in the early trade.