Sensex down 34 points; rupee down 16 paise in early trade
BSE Sensex dropped over 34 points where rupee plunged 16 paise to 59.93 against the US dollar in early trade today
Mumbai: The benchmark BSE Sensex dropped over 34 points in opening trade today as funds and retail investors indulged in reducing positions on weak Asian cues amid fears over the growing crisis in Iraq.
Besides, a cautious approach adopted by participants ahead of wholesale inflation data for May to be released later in the day, also influenced the sentiments.
Stocks of realty, metals, capital goods, consumer durables, PSUs, oil & gas and banking sectors led the fall.
The 30-share Sensex fell by 34.29 points, or 0.14 per cent, to trade at 25,193.88. It had lost 348.04 points in the previous session on Friday.
The 50-share NSE Nifty, which had lost 107.80 points in Friday’s trade, fell by 16.05 points, or 0.21 per cent, to 7,526.05.
Apart from profit-booking by retail investors, a weakening trend in the Asian region on worries over escalating violence in Iraq, dampened the trading sentiments here, brokers said.
Among other Asian markets, Hong Kong’s Hang Seng fell by 0.07 per cent, while Japan’s Nikkei shed 0.62 per cent in early trade today.
The US Dow Jones Industrial Average ended 0.25 per cent higher in Friday’s trade.
Rupee down 16 paise against dollar in early trade
The rupee plunged 16 paise to 59.93 against the US dollar in early trade today at the Interbank Foreign Exchange market due to increased demand for the American currency from oil importers.
The dollar’s gain against a basket of currencies overseas and a lower opening in the domestic equity market also put pressure on the local unit, forex dealers said.
The rupee had weakened by 52 paise, its biggest drop in over four months, to end at 59.77 against the dollar on Friday after global oil prices surged on supply concerns over the unrest in Iraq and sharp fall in domestic equities.
Meanwhile, the benchmark BSE Sensex fell 34.29 points, or 0.14 per cent, to 25,193.88 in early trade today.