Sensex sinks 572 points over oil output cut fears, weak rupee

In addition, outflows of foreign funds, weak rupee and uncertainty over the outcome of Assembly elections subdued investor sentiments.

Representational Image: AFP

Mumbai: Fears over possible crude oil production cut by the OPEC group as well as broadly negative Asians stock markets pulled the barometer S&P BSE Sensex index lower by over 570 points on Thursday. In addition, outflows of foreign funds, weak rupee and uncertainty over the outcome of Assembly elections subdued investor sentiments. All the sectors ended lower, led by energy sector, which shed 2.52 per cent, the most BSE, followed by realty and auto stocks. The Sensex settled lower 1.59 per cent, or 572.28 points, at 35,312.13, from its previous close of 35,884.41. It touched an intra-day high of 35,707.23 and a low of 35,266.76. The Nifty50 lost 181.75 points or 1.69 per cent to close the session at 10,601.15. The market breadth was negative as a number of declining stocks was thrice the advancing ones. A total of 656 stocks advanced while 1,814 declined. The crude oil prices remained volatile amid expectations of supply cuts by OPEC, the group of 15 of the world's top oil producers which is to meet on December 7. However, Brent crude oil price slipped to $60.46 per barrel after the US President Donald Trump said: "Hopefully OPEC will be keeping oil flows as is, not restricted. The world does not want to see, or need, higher oil prices!" The rupee continued to depreciate and traded at Rs 70.88 to a US dollar from its close of Rs 70.46. It had slipped below the 71-mark during the afternoon session of the trade. Selling by foreign institutional investors (FII's) and domestic institutional investors (DII)on Wendnesday also weighed on investor sentiments as provisional figures from BSE showed that FII sold stocks worth Rs 357.82 crore and DII off-loaded Rs 791.59 crore of shares.