Benchmark equity indices in India plummeted during early trade today, relinquishing their gains from the past two days. The downturn was primarily led by the Information Technology (IT) sector, compounded by weak cues from Asian markets and a continued exodus of foreign funds. The 30-share BSE Sensex nosedived by 413.36 points to reach 72,227.83, while the NSE Nifty witnessed a decline of 86.8 points, settling at 21,925.15.
Several prominent IT firms, including HCL Technologies, Wipro, Infosys, Tech Mahindra, Tata Consultancy Services, and Tata Motors, were among the major contributors to the downturn, weighing heavily on the Sensex. The BSE IT index bore the brunt of the sell-off, experiencing a sharp decline of 2.85% during the early trading session.
On the flip side, some relief was provided by gains in stocks such as Sun Pharma, Titan, Bharti Airtel, and ITC.
The gloomy sentiment extended beyond domestic shores as well, with the global oil benchmark, Brent crude, sliding by 0.71% to hit USD 85.17 per barrel, further exacerbating concerns among investors.
Rupee under pressure against the dollar
Meanwhile, in the currency markets, the Indian rupee faced significant pressure against the US dollar. The rupee depreciated by 20 paise to settle at 83.33 against the dollar on Friday. This depreciation was attributed to the greenback's strength in international markets coupled with heightened dollar buying by importers.
At the interbank foreign exchange market, the rupee commenced trading lower at 83.28 against the previous close of 83.13 per dollar. Throughout the morning session, it oscillated within a range of 83.23 to 83.33, eventually closing at 83.33 against the dollar, marking a 20 paise decline from its previous close.
The surge in the dollar's value was reflected in the dollar index, which surged by 0.72% to 104.17. The strengthening of the dollar was driven by concerns surrounding the global economic slowdown, prompting increased demand for the greenback. Notably, the US dollar index had retreated from 104 levels on Thursday following the Federal Open Market Committee's decision to maintain interest rates within the range of 5.25% to 5.5%.
As uncertainty continues to loom over both domestic and international markets, investors remain vigilant, closely monitoring developments for signs of stabilization or further turbulence.
Follow us
