Sensex, Nifty touch fresh record highs on IMF booster
08 February, 2018, 05:59
Indian shares ended lower for a second consecutive session on Tuesday on.
The 30-share S&P BSE Sensex slid to an intraday low of 33,482.81 - down 1,274.35 points compared to Monday's close of 34,757.16 - before recovering some ground to close at 34,195.94. Both Sensex and Nifty were trading below 1-month low.
Nifty 50 fell 168.20 points or 1.58 percent to 10,498.30.
It saw an intra-day movement of about 167.60 points.
On Tuesday, the key indices witnessed their steepest intra-day fall - with the Sensex shedding a staggering 1,200 points before recovering by over 700 points - in nearly two-and-a-half years following a global sell-off.
The NSE is now down almost 2 percent for the year after the falls on Tuesday, after last hitting a record high of 11,171.55 on January 29.
Other shares that are rising on Tuesday include Jet Airways (2.63%), PVR (2%), Century Textiles and Industries (1.59%), Apollo Hospitals (0.63%), Mind Tree (1%).
In the near term, domestic markets could remain volatile, mimicking global market performance, mainly the US. However, the government on Monday tried to downplay the impact of budgetary proposals on domestic equities and attributed the current downtrend to global market cues. However, towards close, market recouped some losses led by value buying on account of earnings growth expectations. "Anxiety about RBI policy and global market movement may influence investors to stay sideline". Rupee plunged 29 paise in the early trade.
Global equities tumbled as interest rates in USA headed higher amidconcerns over returning inflation.
"As long as the risk-off phase continues, we can expect USD/INR to head higher". According to reports, strong prospects of the Fed hiking interest rates in the next month has led to a spike in U.S. bond yields, which touched 2.89%, highest level in almost four years. "The tone of the policy was not as hawkish as expected, given the comment that the nascent recovery needs to be carefully nurtured", says Aditi Nayar, principal economist with rating agency ICRA says.
The total turnover on BSE amounted to Rs 5,340.31 crore, comparedwith a turnover of Rs 4,759.65 crore registered during the previoustrading session.
Mumbai: The sharp rally in the Indian equity market has changed course for now and hit a pause, with the carnage in global markets weighing down heavily.