The rupee on Tuesday rose by 21 paise to end at 71.46 against the US dollar on increased selling of the greenback by exporters amid softening crude oil prices and foreign fund inflows. However, the Sensex plunged by 300 points in a global sell-off.
The rupee has gained 143 paise in the last six trading sessions. This is the sixth straight session of gains for the domestic unit as the US dollar weakened against some currencies overseas.
The 30-share Sensex, after starting off lower at 35,730.77, continued to slide as selling pressure picked up momentum and hit a low of 35,416.18, before settling 300.37 points, or 0.84 per cent, down at 35,474.51. The index had risen 633 points in the last two sessions on the back of increased foreign fund inflows. The 50-share NSE Nifty too dropped by 107.20 points, or 1 per cent, to 10,656.20. Intra-day, it traded between 10,640.85 and 10,740.85.
In Asia, Shanghai Composite Index plunged 2.13 per cent, Hong Kong’s Hang Seng fell 2.01 per cent, Japan’s Nikkei down 1.09 per cent and Singapore index down 1.24 per cent. Korea’s KOSPI and Taiwan index fell 0.86 per cent each. In the Eurozone, Frankfurt’s DAX lost 0.61 per cent, Paris CAC 40 shed 0.70 per cent, while London’s FTSE shed 0.39 per cent in their morning session.
“The domestic currency strengthened for a sixth day after RBI’s OMOs supported rupee’s rise that has been set off by declining oil prices and continued capital inflows. The appreciation has happened even as Dollar fell to a two week low following Fed’s cautious comments over a potential global slow down,” Anand James, Chief Market Strategist at Geojit Financial Services, said. The uptrend in the local unit was largely driven by foreign funds inflows to capital markets. Globally, Brent crude, the international benchmark, was trading low on Tuesday.
On the other hand, European stock indices opened lower as investors continued to monitor developments on Brexit. “Technology companies had been leading the charge in the US and concerns about slowing growth and regulatory overhang, along with concerns around energy sector profitability, alongside rising interest rates led to the sell off in the US,” said an analyst. Markets are reacting to slowing US economic growth and all eyes remain focused on commentary out of the US Fed.
All the sectoral indices, led by metal, teck and healthcare, ended in the negative zone. Yes Bank shares saw the sharpest fall among Sensex components, tumbling 6.10 per cent. Other big losers were Tata Steel 3.21 per cent, Vedanta 2.89 per cent, NTPC 2.42 per cent, Bharti Airtel 2.09 per cent, SBI 1.79 per cent, HDFC 1.31 per cent, ICICI Bank 1.24 per cent and Maruti Suzuki 1.18 per cent.
Sectorwise, the BSE metal index dropped 2.82 per cent, followed by IT 1.74 per cent, teck 1.58 per cent, healthcare 1.57 per cent, PSU 1.15 per cent, consumer durables 1.08 per cent, power 1 per cent, auto 0.83 per cent, bankex 0.78 per cent, FMCG 0.71 per cent, infrastructure 0.62 per cent, capital goods 0.37 per cent and oil & gas 0.35 per cent. The BSE mid-cap index fell 0.92 per cent while the small-cap shed 0.86 per cent.