NEW DELHI: Domestic equity benchmarks Sensex and Nifty suffered massive opening losses on Thursday, mirroring weakness in global stocks after a scary selloff in US stocks overnight.
A sharp selloff in the US stocks sent shivers down investors spine across markets globally as Asian markets sank after Wall Street plummeted.
Asian share markets sank in a sea of red on Thursday after Wall Street suffered its worst drubbing in eight months, a conflagration of wealth that could threaten business confidence and investment across the globe, Reuters reported.
Rupee plunged further today, touching the record low level of 74.48 against the US dollar. Rising bond yields in the US is aggravating funds outflow from emerging markets.
The NSE Nifty index was trading 307 points down at 10154, while BSE Sensex was down 1029 points at 33,732.
Only ONGC, with a gain of 1.92 per cnet, was up in the 30-share Sensex index at that time.
The rupee on Thursday inched closer to 74.50 against dollar on account of buying in American currency by banks and exporters. After opening 10 paise down at 74.31 against dollar, the local currency hit its fresh record low of 74.46 against dollar.
Here are key factors that pulled the domestic equity market down on Thursday.
Weak global cues
Heavy losses in the US market affected market sentiment in early trade. Asian markets plunged following the worst session on Wall Street for months as US President Donald Trump said the Federal Reserve had “gone crazy” with plans for higher interest rates.
Rupee hurtling towards 75
The rupee on Thursday inched closer to 74.50 against the dollar on account of buying in the American currency by banks and exporters. After opening 10 paise down at 74.31 against dollar, the local currency hit its fresh record low of 74.46 against dollar.
Heavy selling by FIIs
Sustained outflow of funds by foreign institutional investors (FII) continued to pressured domestic equity markets. After selling shares worth Rs 10,824 crore in September, FIIs sold shares net of Rs 14,097 in just seven trading sessions so far in October.