Global markets, including Indian markets, were a bit cautious on the back of Iraq issue and consequent rise in global oil prices
While stock indices continue to fall as the crisis in Iraq is deepening, the rupee weakened further following fears of rising inflation and widening Current Account Deficit (CAD).
The S&P BSE Sensex closed at 25105.51 with a loss of 96.29 points. While the broader BSE-100 lost 0.39 per cent, the mid-cap and small-cap stocks dipped by 0.39 per cent and 0.83 per cent, respectively.
On the National Stock Exchange (NSE), the 50-share Nifty lost 29.25 points to close at 7511.45.
“Global markets, including Indian markets were a bit cautious on the back of Iraq issue and consequent rise in global oil prices. Indian currency also weakened as a consequence of this,” said Sudip Bandyopadhyay, Managing Director and CEO of Destimoney Securities.
The rupee lost 10 paise to close at 60.18 against its previous close of 60.08 a dollar. After opening at 60.21, the rupee touched an intra-day low of 60.32.
The increase in crude oil prices indicates further inflationary pressure. Brent crude rose to around $115 a barrel. Higher dollar demand by oil companies also impacted the rupee.
“The Indian markets were range-bound and generally cyclicals such as metal, banks and infrastructure were under pressure. The defensives, like pharmaceuticals and information technology went up.