Sensex plunges 274 points, Rupee down 38 paise in early trade
Mumbai: Extending losses for the third straight session, the benchmark BSE Sensex fell over 274 points in early trade today on sustained selling by funds amidst weak global trend as geopolitical tensions worsened in Iraq and Russia.
Besides, fresh weakness in the rupee had negative impact.
The 30-share barometer, which had lost 319 points in the past two sessions, tanked 274.28 points, or 1.07 per cent, to 25,314.73.
All the sectoral indices, led by banking, PSU and oil and gas were trading in negative zone with losses up to 1.63 per cent.
Similarly, the National Stock Exchange index Nifty dipped below the 7,600-mark by falling 83.35 points, or 1.09 per cent, to 7,565.90.
Brokers said a subdued trend in Asian trade on overnight losses in the US markets after geopolitical tensions worsened in Iraq and Russia, dampened the trading sentiments here.
Meanwhile, the rupee fell sharply by 38 paise to Rs 61.60 against the US dollar in early trade today.
Among other Asian markets, Japan’s Nikkei tumbled three per cent, while Hong Kong’s Hang Seng shed 0.33 per cent in early trade.
The US Dow Jones Industrial Average ended 0.46 per cent down in yesterday’s trade.
Rupee down 38 paise against dollar in early trade
The rupee fell sharply by 38 paise to 61.60 against the US dollar in early trade at the Interbank Foreign Exchange market today on demand for the American currency from importers amidst its higher value overseas.
Forex dealers said besides the dollar’s gains against the euro overseas, increased demand from importers for the US currency and a lower opening in the domestic equity market also put pressure on the rupee.
Yesterday, the rupee strengthened by 27 paise to close at 61.22 against the US currency following suspected RBI intervention and dollar selling by exporters.
Meanwhile, the benchmark BSE Sensex plunged by 274.28 points, or 1.07 per cent, to 25,314.73 in early trade today.