Benchmark equity indices Sensex and Nifty extended their losses to the fourth session in a row on Thursday in line with selloffs in global markets and the Indian rupee plummeted to a new record low amid sustained foreign fund outflows and renewed concerns over aggressive policy tightening by US Fed after higher-than-expected CPI inflation.
The BSE Sensex traded in the positive zone in the morning session but surrendered gains in the afternoon trade in absence of any support. The 30-share index finally closed 98 points or 0.18 percent lower at 53,416.
Likewise, the NSE Nifty fell 28 points or 0.18 percent to settle at 15,939 – marking its fourth straight session of loss.
The Sensex breadth was equally divided between buyers and sellers.
Top laggards on the Sensex chart were Axis Bank, HCL Tech, Tech Mahindra, Ultratech Cement, TCS and SBI – shedding as much as 1.60 percent.
Among the winners were Sun Pharma, Dr Reddy’s, Maruti, Kotak Bank, Titan and Reliance.
Broader BSE smallcap and midcap indices fell more than the benchmark.
The Bank Nifty continued to face selling pressure from higher levels and faced stiff resistance at the 35,200-35,300 zone. The lower-end support stands at 34,400 and if breached will lead to further selling pressure towards 34,000. The index is broadly stuck in a range between 34,400-35,300 zones and a break on either side will lead to trending moves, said Kunal Shah, Senior Technical Analyst at LKP Securities.
Here are some of the key highlights from the global financial markets:
Rupee tanks to fresh record low:
The Indian currency tumbled again to hit a new life-time low of 79.99 against the US dollar on Thursday, under pressure from a host of headwinds like relentless rise in the greenback value, foreign fund outflows and fears of more aggressive Fed tightening after record surge in US inflation.
Global market selloffs:
Global shares fell on Thursday after the latest red-hot US inflation reading increased investor caution about Federal Reserve rate hikes.
Asian shares were stuck at two-year lows and European indexes opened in the red. Europe’s STOXX 600 and London’s FTSE 100 were both down 0.2 percent on the day.
Wednesday’s data showed US consumer prices jumped 9.1 percent year-on-year in June, up from May’s 8.6 percent rise. The data was seen as firming the case for the Federal Reserve to raise rates aggressively.
Oil prices soften:
Oil prices fell more than $2 on Thursday as investors focused on the prospect of a large US rate hike later this month that could stem inflation but at the same time hit oil demand.
Brent crude futures for September were down $2.14 to $97.43 a barrel after settling below $100 for a second straight session on Wednesday.
US West Texas Intermediate crude for August delivery was at $93.78 a barrel, down $2.52.
USD climbs:
The US dollar resumed its relentless rise on Thursday, charting new 24-year highs against the yen and pinning the euro close to parity, as investors bet on the Federal Reserve ratcheting up interest rates to combat soaring inflation.
Global economic turmoil has put a rocket under the safe haven dollar, pushing the dollar index that tracks the greenback against six counterparts up more than 13 percent this year. It was last up 0.3 percent on the day at 108.580.
The dollar strengthened more than 1 percent against the yen, pushing it above 139 yen per dollar for the first time since 1998. It was last up 1.1 percent at 138.92 yen.
Gold loses sheen:
Gold prices shed more than 1 percent on Thursday, hovering near a one-year low, as the dollar extended its blistering rally after a hot US inflation print cemented expectations around an aggressive Federal Reserve rate hike.
Gold, which pays no interest, tends to be pressured when interest rates rise as this increases the opportunity cost of holding bullion.
Spot gold fell 1.1 percent to $1,716.69 per ounce, after hitting its lowest since August 2021 on Wednesday.
US gold futures were down 1.2 percent to $1,714.40.
