Falling value of rupee, rising crude price play spoilsport
Equities fell sharply on the bourses on Wednesday as the falling value of rupee and rising price of crude oil played a spoilsport in the financial markets.
The Bombay Stock Exchange (BSE) 30-share sensitive index, Sensex, tanked 286.06 points or 1.47 per cent at 19177.76. The fall was led by realty stocks which lost 4.76 per cent followed by metal 3.11 per cent, PSUs 3.08 per cent and consumer durables 2.84 per cent. Except FMCG, which gained marginally by 0.26 per cent and healthcare (up 0.23 per cent), all other sectoral indices ended in the negative territory.
On the National Stock Exchange (NSE), the 50-share Nifty closed at 5770.90 with a loss of 86.65 or 1.48 per cent.
“It started weak and continued that trend with the surfeit of negative news. Any signs of a pull-back from lower levels were met with huge selling pressure,” said Amar Ambani, Head of Research at India Infoline Ltd (IIFL).
Crude prices surged on account of political tensions in Egypt. The country, though not an oil producer, controls the Suez Canal. It is one of the world’s busiest shipping lanes through which majority of the world’s energy passes. “Oil marketing companies witnessed intense selling pressure,” Mr. Ambani added.