Sensex opens lower on Friday after plummeting 800 points on Thursday

The BSE Sensex plummeted over 800 points in the afternoon session on Thursday, Oct 4, as the rupee sank to another low amid boiling crude prices, weak global cues; The Sensex opened lower on Friday

IANS photo
IANS photo

NH Web Desk

The BSE benchmark Sensex plummeted over 800 points in the afternoon session on Thursday, October 4, as the rupee sank to another low amid boiling crude prices, weak global cues

On Friday at 10.30 am, the Sensex was trading at over 300 points lower than its Thursday closing, amid fears over the Reserve Bank of India (RBI) turning hawkish in its monetary policy stance. Index-wise, the Sensex opened at 35,097.99 points from its previous close of 35,169.16 points on Thursday.

The National Stock Exchange’s Nifty50 traded below the 10,600-mark on Friday. The Nifty50 opened at 10,514.10 points after closing at 10,599.25 points. It traded at 10,530.45 points during the morning trade session, down 68.80 points and 0.65%.

The turmoil in the markets came after the rupee plunged to a new low of 73.81 against the dollar on Thursday, while the international benchmark Brent crude oil price breached the US $86 per barrel level, nearing its four-year high. In addition, fears over the central bank turning aggressive in its monetary policy stance due to a rise in inflationary pressure also led to erosion in investors' risk-taking appetite.

With rupee and crude oil showing no signs of stability, weakness in the markets is likely to continue in the coming sessions, says analysts

All sectoral indices were trading in the red on Thursday, with IT, auto, pharma, banking and realty stocks witnessing most losses. Rise in crude oil prices, along with a weak rupee and outflow of foreign funds, had dragged the key domestic equity indices lower over 1% on Wednesday, October 3.

According to analysts, the equity benchmark indices have fallen nearly 10% from peak levels attained in August, led by weak domestic sentiments, global uncertainties, depreciating rupee and strengthening crude oil prices.

With rupee and crude oil showing no signs of stability, weakness is likely to continue in the coming sessions, they said. Brokers said volatility was seen in most Asian markets as high US yield and good economic data led to fear that investors would move to the US, dampened trading sentiments.

With agency inputs

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