Sensex sheds over 500 points after rupee hits new record low at 72.74 against USD

Sensex traded at 37,607.33 baring a loss of 314.84 points or 0.83 per cent whereas the Nifty was at 11,341.65 shedding 96.45 points or 0.84 per cent.

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MUMBAI: Indian stock market majors Sensex and Nifty 50 Index tanked heavily on Tuesday after Indian rupee hit a record low of 72.2 against the US dollar in the afternoon deals. After the crash, Sensex traded at 37,607.33 baring a loss of 314.84 points or 0.83 per cent whereas the Nifty was at 11,341.65 shedding 96.45 points or 0.84 per cent. In the broader markets, both S&P BSE MidCap and S&P BSE SmallCap ended 1.4 per cent low. Market statistics hinted that several stock market heavyweights including HDFC Bank, ITC, Reliance Industries, TATA Consultancy Services and others were major negative point contributors. Companies such as ITC, PowerGrid Corporation, Hero MotoCorp, Bharti Airtel and Tata Steel were top five Sensex losers. Earlier during the day, rupee came off record low levels and regained as much as 17 paise at 72.2763 per unit US dollar. Commenting on the bleak outlook of the market, DBS Bank stated that it was expecting a sustained pressure on the rupee with factors including oil prices, widening current account deficit and the U.S. Federal Reserve’s rate hike cycle, reported Reuters. “The market will continue to remain under pressure for some time, likely until the end of the week, as it is already over-stretched,” R.K. Gupta, managing director at Taurus Asset Management was quoted as saying in a report by Reuters. Gupta further said that some investors may choose to book profit before the second-quarter advance tax payment deadline, and markets may also see correction due to impending state elections in four states in November. The foreign portfolio investors and domestic institutional investors on Monday sold shares worth a net Rs. 841.68 crore and Rs. 289.66 crore respectively. The Sensex had closed at 37,922.17 and the Nifty at 11,438.