Technology stocks pulled down Asian indices after the global chief financial officer of Chinese technology giant Huawei, Meng Wanzhou, was arrested in Canada for alleged violations of US sanctions.
Sensex hit a two-week low on Thursday as global sell-off and concerns of outcome of the state elections weighed on the investor sentiment.
While the Sensex shed 572.28 points or 1.6% to close the session at 35,312.13, the broader Nifty50 pared 181.75 points or 1.7% to end at 10,601.15. Thursday marked the third day of fall for both Sensex and Nifty50, wiping out investor wealth to the tune of Rs 3.6 lakh crore. As of Thursday’s close, the market capitalisation of BSE listed companies stood at Rs 139.88 lakh crore.
The rupee depreciated 44 paise to close at 70.90 against the dollar due to capital outflows and stronger greenback overseas.
A weakening rupee, which plunged below 71-mark intra-day also dented investor sentiment, analysts said. The 10-year benchmark bond yield fell to as low as 7.38% in early trade, its lowest since April 11. “The yield may fall as low as 7% if oil prices remain low,” said Mahendra Jajoo, the head of fixed income at Mirae Asset Global Investments in Mumbai. “The outlook is very bullish.” Bond prices rose to over eight-month high as rate hike fears faded after the RBI promised to keep buying government bonds to infuse liquidity.
Technology stocks pulled down Asian indices after the global chief financial officer of Chinese technology giant Huawei, Meng Wanzhou, was arrested in Canada for alleged violations of US sanctions. Hang Seng declined 2.5%, Nikkei and Shanghai Composite slid 1.9% and 1.7%, respectively.
At 10,601.15, the benchmark Nifty50 has given a negative return of 9.3% in dollar terms since January, while the S&P 500 has risen by 1% over the same period.
With agency inputs