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Rupee retreats 31 paise to 70.87 against USD; Sensex drops 155 pts, Nifty slips below 11,500;

The Indian Express logo The Indian Express 30-09-2019

Equity benchmark Sensex fell over 155 points on Monday to close at 38,667.33 due to a massive sell-off in banking stocks as investors turned cautious on the financial services space.

a group of people standing in front of a palm tree: Starting the session marginally higher, the 30-scrip Sensex soon came under robust selling pressure and fell as many as 472 points in intra-day trade. (Express Photo: Ganesh Shirsekar) © Provided by IE Online Media Services Pvt Ltd Starting the session marginally higher, the 30-scrip Sensex soon came under robust selling pressure and fell as many as 472 points in intra-day trade. (Express Photo: Ganesh Shirsekar)

Likewise, the NSE gauge Nifty shed 38 points to close below the psychologically key 11,500-mark.

Starting the session marginally higher, the 30-scrip Sensex soon came under robust selling pressure and fell as many as 472 points in intra-day trade. It swung between a high of 38,873.12 and a low of 38,401.09, before finally closing at 38,667.33, showing a decline of 155.24 points or 0.40 per cent.

The NSE’s 50-share Nifty closed at 11,474.45, falling 37.95 points or 0.33 per cent.

On the Sensex chart, Yes Bank was the biggest loser with over 15 per cent drop. Other major losers were IndusInd Bank, SBI, ICICI Bank, Sun Pharma, HDFC and Axis Bank, losing up to 6.84 per cent.

In contrast, Bharti Airtel was the top gainer, spurting 5.29 per cent. IT stocks HCL Tech, TCS and Infosys also finished in the green.

In the broader market, the BSE Smallcap index was the worst hit with a drop of 1.17 per cent, followed by the midcap gauge, which fell 1.12 per cent. BSE Largecap too underperformed the benchmark, sliding 0.42 per cent.

Meanwhile, the Indian rupee declined 31 paise to close at 70.87 against the US dollar on Monday amid rising demand for the greenback vis-a-vis other currencies overseas, even as crude oil prices eased.

Forex traders said globally risk appetite has plunged as US-China trade concerns continue to linger. Besides, selling in domestic equities and unabated foreign fund outflows also weighed on the local unit.

At the interbank foreign exchange market, the rupee opened on a strong note at 70.37, then lost ground and fell to an intra-day low of 70.88 against the American currency.

However, it finally closed at 70.87 per US dollar, down 31 paise over its previous close.

"During early trades, rupee surged to 8-week high of 70.36, however, the gains got capped by RBI intervention," Emkay Global Financial Services Currency Research Head Rahul Gupta said. Gupta further said that "there is a possibility that US may curb investments in China. Thus, as we near October 10, any developments on US-China trade front will keep rupee under pressure."

According to reports, US-China trade talks are set to resume from October 10.

Forex traders said the domestic unit is expected to trade in a narrow range this week ahead of the Reserve Bank’s policy review meet.

The central bank is scheduled to announce its next bi-monthly monetary policy on October 4.

Brent futures, the global oil benchmark, dropped 1.47 per cent to USD 61.00 per barrel.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.17 per cent to 99.27.

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