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Monday, October 26, 2020

Sensex slumps over 1,100 points, Nifty settles near 10,800-mark on F&O expiry and global selloff

The S&P BSE Sensex crashed 1,114.82 points (2.96 per cent) to end at 36,553.60, while the Nifty 50 tanked 326.30 points (2.93 per cent) to settle near 10,800-mark at 10,805.55.

By: Express Web Desk | New Delhi | Updated: September 24, 2020 4:13:51 pm
An electronic ticker board displays stock figures outside the Bombay Stock Exchange (BSE) building in Mumbai, India, on Tuesday, Dec. 11, 2018. (Photographer: Dhiraj Singh/Bloomberg)

The benchmark equity indices on the BSE and National Stock Exchange (NSE) fell for the sixth consecutive day, registering their sharpest fall in over four months on Thursday after crashing nearly 3 per cent, amid a sharp selloff in the global markets and expiry of September-series futures and options (F&O) contracts.

The S&P BSE Sensex crashed 1,114.82 points (2.96 per cent) to end at 36,553.60, while the Nifty 50 tanked 326.30 points (2.93 per cent) to settle near 10,800-mark at 10,805.55. Both the indices had opened nearly 1.5 per cent lower earlier in the day and extended their losses as the day progressed.

IndusInd Bank was the worst performer on the BSE benchmark slipping 7.10 per cent on Thursday. It was followed by Bajaj Finance, Tech Mahindra, Tata Consultancy Services (TCS), Mahindra & Mahindra (M&M) and Tata Steel. On the other hand, only Hindustan Unilever ended with gains, rising 0.36 per cent.

Among sectoral indices, the Nifty Metal index was the worst sectoral performer on the NSE, falling 4.24 per cent dragged by Jindal Steel & Power, NMDC, Steel Authority of India (SAIL) and National Aluminium Company. It was closely followed by the Nifty IT index which fell 4.20 per cent weighed by Mphasis, TCS, Tech Mahindra and Coforge.

In the broader market, S&P BSE MidCap index slipped 304.71 points (2.14 per cent) to end at 13,933.21, while S&P BSE SmallCap settled at 14,168.28, down 331.25 points (2.28 per cent).

Rupee

The rupee depreciated 32 paise to settle at 73.89 (provisional) against the US dollar on Thursday as sell-off in domestic equities and foreign fund outflows weighed on investor sentiment.

At the interbank forex market, the rupee opened on a weak note at 73.82, then fell further to finally close at 73.89 against the American currency, registering a fall of 32 paise over its last close. On Wednesday, the rupee appreciated by one paisa to settle at 73.57 against the US dollar.

During the session, the local unit witnessed an intra-day high of 73.75 and a low of 73.96 against the greenback. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.04 per cent to 94.42.

Global markets

Global shares slid and the dollar rose on Thursday on investor concern about another economic hit from the coronavirus pandemic, ahead of German sentiment data and speeches from a clutch of central bankers.

After a summer lull in much of Europe, the infection rate has begun to rise sharply, with a number of countries including Britain introducing tougher rules to help limit the spread of the virus.

The MSCI World index was down 0.6 per cent at 0733 GMT, its fifth day in the red out of the last six and hovering near a two-month low. Asia-Pacific shares outside Japan fell 1.93 per cent, chalking up their worst day in two months after economic warnings from US Federal Reserve officials.

A broad gauge of Europe’s top shares, the STOXX Europe 600, was down 1 per cent.

Overnight, the Dow Jones Industrial Average fell 1.92 per cent, the S&P 500 lost 2.37 per cent and the Nasdaq Composite dropped 3.02 per cent.

Fed Vice Chair Richard Clarida and Cleveland Federal Reserve Bank President Loretta Mester both said the economy remained in a “deep hole”, with Clarida calling for more stimulus.

Yet political stalemate in Washington continues to frustrate efforts to prop up the world’s biggest economy, beset by one of the worst COVID-19 death rates globally.

– rupee input from PTI, global market input from Reuters

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