Extending losses to the sixth straight session, the benchmark Sensex on Wednesday plunged by 274 as hopes dwindled that the crucial GST Bill would be cleared in the ongoing winter session of parliament. The NSE Nifty cracked below the 7,700-mark as a muted trend in global markets also added to the bearishness.
According to dealers, profit-booking was the order of the day as investors mind lingered in a state of uncertainty as the Parliament business was hurt for a second day with the Opposition, Congress, holding noisy protests on the National Herald Case.
“Logjam in Parliament is creating a hiccup in the Indian market since GST is expected to be passed in the Winter Session,” Vinod Nair Head-Fundamental Research at Geojit BNP Paribas Financial Services. Foreign investors were also continuously reducing their exposure in emerging markets in a run up to the first interest hike by the US Federal Reserve in nearly a decade.
After a five-session fall, the rupee finished marginally higher at 66.83 per dollar. The weak dollar sentiment largely supported the rupee movement despite the impending historic Fed rate hike.