Mumbai, The BSE Sensex slumped on Thursday by 806.47 points to end negative at 35,169.16, as index heavyweight Reliance Industries and TCS, among others, were badly hit amidst sinking rupee and surging crude oil prices.
The Nifty of National Stock Exchange (NSE) also crashed by 259 points to 10,599.25.
The Sensex edged down by 155 points to 35,820.53 in the morning trade and remained negative throughout the day. Finally, it closed at 35,169.16, slipping by 806.47 points as compared to its last close.With today’s crash, the Sensex has plummeted by 1,356 points in past couple of days.
The Nifty recorded day’s high and low at 10,754.70 and 10,547.25 points, respectively.
Indian equity benchmarks extended recent slump as blue chip stocks came under heavy selling pressure. The sinking Indian currency and surging crude prices also put pressure on shares. As India imports a majority of its crude, a surge in crude raises concerns on fiscal deficit, inflation and gives lesser room for the government to boost growth through spending on infrastructure. A weak rupee raises the cost of importing crude oil.
The sectoral indices such as Energy, Oil & Gas, Telecom, Technology, Auto and Health Care dragged the market down, falling by more than 6 per cent.Scrips of Reliance Industries plunged by more than 7 pc, followed by HeroMoto Corp by 5.45 pc, TCS by 4.54 pc, Adani Ports by 4.17 pc and ONGC by 3.74 pc.
Shares of oil marketing companies fell by up to 13 per cent on Thursday on BSE, after Finance Minister Arun Jaitley announced that these companies will absorb excise duty by one rupee on petrol and diesel.
HPCL, BPCL and IOC tanked up to 13 per cent following the announcement.Another major stock, ICICI Bank, climbed over 4 per cent to Rs 316, after the bank’s chief executive Chanda Kochhar resigned from the post with immediate effect.
The broader markets fell today, as the BSE Mid-Cap index and Small-Cap lost by 1.93 per cent and 2.07 pc, respectively.The market breadth was weaker on BSE, as 769 shares advanced against 1,897 declined and 136 were unchanged.
Negative global cues also spoiled sentiment. Investors were cautious ahead of the outcome of Reserve Bank of India’s (RBI) three-day Monetary Policy Committee (MPC) meeting tomorrow.
The sectoral indices that were battered were Energy (by 6.66 pc), Oil & Gas (by 6.58 pc), Health Care (by 3.02 pc), Technology (by 2.97 pc) and Telecom (by 1.86 pc).
Major losers were Reliance Industries (by 7.66 pc), Hero MotoCorp (by 5.45 pc), HDFC Bank (by 4.01 pc) and Adani Ports & Special Economic Zone (by 3.97 pc).
IT major Tata Consultancy Services (TCS) fell 4.38 pc. Engineering and construction major, Larsen & Toubro, rose 1.09 pc on today’s announcement that its wholly-owned subsidiary, L&T Hydrocarbon Engineering (LTHE), in consortium with Baker Hughes, a GE company, and McDermott International Inc. has been awarded the subsea contract for India’s Oil & Natural Gas Corporation’s (ONGC) largest deepwater oil and gas project, the development of block DWN-98/2 in the Krishna Godavari basin.
In the foreign exchange market, the rupee edged lower against the US dollar, with the partially-convertible currency hitting the record low of 73.815, compared with its previous close of 73.34.