Double blow as markets extend losses, rupee hits record low

BSE Realty index has slumped by almost 3% followed by counters like PSU, Metal, Oil & Gas, Auto, Banks and Power, all dropping by 2% each.

Benchmark indices have extended the losses tracking weak global cues along with financials and auto shares leading the declining. Depreciating rupee has also weighed on the market sentiments.

The rupee today fell by a massive 97 paise to breach the 61-mark to 61.19, a new all-time low, against the dollar in early trade at the Interbank Foreign Exchange market, on heavy demand for the American currency amid capital outflows.

The Reserve Bank of India was spotted selling dollars via state-run banks on Monday to slow the rupee's slide after the domestic currency hit a record low earlier in the session, five traders said.  

By 10:30, the Sensex was lower by 264 points at 19,231 mark and the Nifty dropped by 84 points at 5,784 levels.

On the global front, Asian markets remain dismal with Nikkei, Strait Times, Hang Seng, Taiwan and Kospi dropping between 0.3-2%.

Back home, BSE Realty index has slumped by almost 3% followed by counters like PSU, Metal, Oil & Gas, Auto, Banks and Power, all dropping by 2% each. Apart from IT, all the major BSE sectoral indices are trading in red zone.

Tata Motors is the top Sensex loser, down 4% on reports that the production line at Jaguar Land Rover (JLR) facilities in the UK may get impacted after delivery workers from DHL voted for a strike.

Other notable losers are HDFC, Coal India, ONGC, JSPL, ICICI Bank, GAIL and RIL, all dropping between 2-3.5%.

On the gaining side, Infosys, DRL, Wipro, Cipla and Hero Moto have gained between 0.4-1%.

Shares of state-owned oil marketing companies are trading lower by up to 5% on the bourses after the rupee hit a record low of Rs 61.21 against dollar in early trades today.

All three listed oil marketing companies Indian Oil Corporation, Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) were down in the range of 4-5% on BSE.

Reliance Communications (RCom) has rallied over 6% to Rs 144 in otherwise weak market after the telecom services provider said that its board of directors had given in-principle approval to demerger of the company’s real estate assets into a separate company.

FreseniusKabi Oncology is trading lower by 3% at Rs 102 after the pharmaceutical company said it has received a warning letter from the US health regulator asking for certain other information and implementation of more corrective and preventive measures regarding GMP non- conformities.

The market breadth in BSE remains weak with 1,010 shares declining and 545 shares advancing.