While stock market indices slipped, the rupee lost 36 paise against the dollar as the crisis in Iraq deepened and the rising oil prices and inflation were casting shadow on markets.
The Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) dipped by 274.94 points or 1.08 per cent to close at 25246.25.
While the S&P BSE 100 lost 1.01 per cent, BSE’s mid-cap stocks lost 0.73 per cent and small-cap index fell by 0.28 per cent.
On the National Stock Exchange, the 50-share Nifty closed at 7558.20 with a loss of 73.50 points or 0.96 per cent.
“The fall was largely on the back of tension that is prevailing in Iraq. Any down-tick will provide a buying opportunity for investors, given the fact that the general outlook for India is far better,” said A. Balasubramanian, Chief Executive Officer, Birla Sun Life Asset Management Company.
The Indian equity markets were extremely volatile on Wednesday with the Nifty touching a low of 7516 before recouping to 7600 and falling again to close at 7558.20. The BSE Sensex touched a low of 25114 intra-day before climbing back to 25,400 only to fall again and close at 25246.25.
The rupee closed on Wednesday at 60.39 a dollar as compared to its previous close of 60.03. It touched an intra-day low of 60.42. Brent crude was trading above $ 113 per barrel.
“Attack by Sunni militants on Iraq’s oil refinery impacted Indian markets. Stocks of oil companies were major losers, which put pressure on rupee due to higher dollar demand from oil companies,” said Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities. According to him, “suspected intervention by the Reserve Bank of India was seen in the afternoon which tried to prevent a further fall in rupee.”
