Late slide halts Sensex record run, rupee plunges past 70.50 against US dollar9 min read . Updated: 29 Aug 2018, 05:39 PM IST
The rupee hit a fresh record low today against the US dollar, weakening past the 70.50 mark.
Hurt by a late-session selloff, the Sensex and Nifty fell ended the day lower. For most part of the session, the Sensex and Nifty traded mostly flat. The rupee today hit a fresh record low of 70.64 against the US dollar, plunging past 70.50 against the US dollar. The rupee settled at 70.59 a dollar, as compared to Tuesday’s close of 70.10. The Sensex closed 173 points lower at 38,722 while Nifty settled below 11,700, at 11,691, snapping their recent streak of record runs. Market heavyweight Reliance Industries or RIL fell 1.8% while Coal India declined nearly 3%. HDFC Bank, HUL, Maruti Suzuki, infosys, Vedanta, IndusInd Bank, and Yes Bank fell between 1% and 1.5%. Among the Sensex stocks, SBI and ONGC gained nearly 1.5%.
5:05 pm: The rupee today fell to a record low against the US dollar. Rupee closed at 70.59 a dollar, down 0.69% from its previous close of 70.11. The currency opened at 70.30 against the dollar, touching a high 70.24 and a low of 70.64, breaching the previous all-time high of 70.40.
4:00 pm: Gold prices today snapped a four-day rising trend, after they fell by ₹ 70 to ₹ 31,080 per 10 grams. Gold had risen ₹ 530 in the previous four sessions. Sovereign also fell by ₹ 100 to ₹ 24,500 per piece of eight gram.
3:40 pm: Midcap stocks outperformed today, with the BSE midcap index ending nearly 0.5% higher.
2:56 pm: Sensex and Nifty continue to trade weak in late trade today. Sensex down about 40 points while Nifty is off 16 points. The rupee has recovered a bit after plunging to fresh all-time low of 70.57 against the US dollar today. In recent trade the rupee was trading at 70.41 a dollar.
1:49 pm: DA hike for central government employees
The Union Cabinet today approved the release of an additional instalment of dearness allowance (DA) for central government employees and dearness relief to pensioners with effect from 1 July, 2018.
In another Cabinet decision today, the government approved revised cost estimate for setting up of India Post Payments Bank from ₹ 800 crore to ₹ 1,435 crore.
1:01 pm: Markets slip, rupee hovers near 70.50 against US dollar
The rupee was hovering around 70.50 levels against the US after hitting an all-time low of 70.56 against the US dollar. BSE Sensex and Nifty slipped, following some profit-taking in stocks like Reliance Industries and Infosys.Midcap stocks pared some gains were broadly higher.
“Rupee remained generally weak during Q1 of 2018-19 tracking broad-based gains in US dollar, sustained rise in crude oil prices and persistent FPI outflows from the Indian debt segment. The rupee staged intermittent recovery, especially towards end-May, due to softening of crude oil prices on prospects of higher production and better than expected Q4 growth but the gains could not be sustained in June due to significant hardening of crude oil prices, increase in CAD for Q4 of 2017-18, rate hike by the US Fed and intensification of trade related tensions between the US and China."
12:35 pm: Rupee suffers sharp decline, near 70.55 against US dollar
Extending its fall the US dollar, the rupee fell to a record low of 70.54 a dollar today. In comparison, the rupee had closed at 70.11 a dollar on Tuesday. Concerns over higher oil prices and its impact on India’s current account deficit, along with month-end dollar demand from importers, weighed on the rupee, say analysts.
In a report Moody’s Investors Service noted today that higher oil prices will contribute to India’s higher current account deficit but the gap will remain significantly narrower than five years ago. Moody’s also noted that higher oil prices than in the last two years and rising interest rates are raising pressure on the Indian government’s budget and current account. The central government deficit will be wider than targeted in the short term but a temporary fiscal slippage, if any, will not offset India’s robust nominal GDP growth and large domestic financing base which helps keep government’s debt burden broadly stable, it added..
12:28 pm: TTK Prestige shares surge after CLSA upgrades price target
Shares of kitchen appliance maker TTK Prestige jumped nearly 6% to ₹ 6,819, after global brokerage CLSA raised the stock’s price target to ₹ 7,725 from ₹ 7,010, while maintaining “buy". CLSA sees TTK Prestige as a play on “improving rural consumption and as a beneficiary of government spending ahead of the elections." TTK Prestige will also benefit from government’s ‘Ujjwala’ scheme which provides LPG connections to families below-poverty-line; leading to growth for stoves and cookers.
12:01 pm: Reliance Infra share trade higher ahead of board meet
Reliance Infrastructure shares were trading nearly 2% higher today. Its board will meet today to consider and approve the transfer of integrated Mumbai power business to Adani Transmission. Reliance Infra said it has obtained all relevant approvals from fair trade regulator Competition Commission of India (CCI), shareholders of the company, Maharashtra Electricity Regulatory Commission, and others for sale of Mumbai power business to Adani Transmission for ₹ 18,800 crore.
11:38 am:: Rupee plunges past 70.50 against US dollar
Month-end dollar demand from importers and a broad decline in other Asian currencies weighed on the rupee. The rupee is down nearly 9% against the US dollar so far this year amid concerns over higher oil prices. The rupee was trading at 70:51 against the US dollar.
The rupee extended decline today, falling close 70.50 against the US dollar.The rupee was trading close to 70.46 against the US dollar, breaching 16 August lows of 70.40 a dollar.
11:03 am: The rupee hit a record low of 70.40 a dollar against the US dollar.
10:55 am: The rupee today hovered near record low against the US dollar. The rupee was trading at 70.38 a dollar, not far from the all-time low of 70.40 a dollar, hit on 16 August. Traders said that month-end dollar demand from importers weighed on the rupee.
10:49 am: Nalco share prices rise after HSBC initiates coverage with buy rating
Shares of state-run aluminium producer Nalco were up 3.5% at ₹ 77.45 after HSBC Global Research initiated coverage on the stock with a “buy" rating and target price of ₹ 90. “Nalco is benefiting from the unusually high alumina price and although we expect the price to fall after 2019, this should be offset by a steady rise in aluminium prices as supply continues to tighten," HSBC said.
10:26 am: Rupee falls against US dollar
The rupee was trading at 70.30 a dollar, down from its previous close of 70.11. Many other Asian currencies were trading lower today. Philippine Peso lost 0.212%, Thai Baht 0.172%, China renminbi 0.169%, Indonesian Rupiah 0.162%, Malaysian Ringgit 0.134%, China Offshore 0.119%, Japanese yen 0.072% and Singapore Dollar 0.007%.
10 am: Kwality Ltd shares fall nearly 5%
Kwality Ltd shares lost as much as 4.99% to ₹ 22.09 per share after the board meet to consider issuance of securities by way of QIP/ADR/GDR.
Intec Capital lost as much as 4.97% to ₹ 32.50 after the company approved re-appointment of Sanjeev Goel as Managing Director.
Jaiprakash Power Ventures Ltd gained as much as 11.38% to ₹ 3.23 per share after the company to mull conversion of loan of lenders into Compulsory Convertible Pref Share up to ₹ 4,000 crore.
Artson Enginnering Ltd gained as much as 19.97% to ₹ 73 per share after the company got purchase order from Thyssenkrupp Ind India of about ₹ 15 crore.
Nitin Fire Protection Industries Ltd lost nearly 4.5% after loss widened to ₹ 48.36 crore for the quarter ending 30th June 2018 from ₹ 34.20 crore for the same quarter last year.
9:42 am: JSW Steel shares hit a new high today
JSW Steel will replace Lupin in Nifty50 index next month. 23 of 31 brokerages rate the stock “buy" or higher, five “hold" and three “sell" or lower, according to Reuters. On BSE, JSW Steel shares rose 3.5% to a new high of ₹ 379.5.
9:30 am | Nifty rejig from September 28 - Lupin shares fall 1%, JSW Steel shares up nearly 3%
Shares of pharma major Lupin were down 1% in early trade today. Lupin will move out from the National Stock Exchange’s benchmark index Nifty 50 from September 28. In its place, leading alloy maker JSW Steel will enter the index. JSW Steel shares were up nearly 3% in early trade. These changes were announced by NSE Indices, an arm of the NSE, as part of its periodic review.
Further, six companies - Punjab National Bank, Cummins India, Emami, JSW Steel, Power Finance Corporation and Rural Electrification Corporation - will be excluded from Nifty Next 50 index, which composes of 50 companies from Nifty 100, other than the Nifty 50 firms. These firms will be replaced by Bandhan Bank, Biocon, HDFC Standard Life Insurance Company, ICICI Lombard General Insurance Company, Lupin and The New India Assurance Company.
9:20 am: Indian markets were off to a cautious start today, with benchmark indices BSE Sensex and Nifty50 inching lower in early trade. Some profit-taking was seen in IT and banking stocks. Metal stocks extended gains today after surging on Tuesday.The Sensex was down 37 points at 38,858 while Nifty was off 18 points at 11,720.
8:35 am | Opening bell: Cues to look out for before trading today
US stocks closed slightly higher on Tuesday, boosted by an improved outlook on global trade after the US and Mexico struck a deal.
Asia markets traded in positive territory on Wednesday morning after Wall Street extended gains overnight — with the Nasdaq and S&P 500 hitting another record high — as trade fears eased.
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(Harsha Jethmalani/Ashwin Ramarathinam/Mint)
With inputs from agencies