Rupee hits all-time low; Nifty ends below 8,000 on Nov F&O expiry day

The S&P BSE Sensex ended down 192 points at 25,860 and the Nifty50 closed 58 points lower at 7,965

Benchmark indices ended lower on November F&O expiry day as the rupee crashed to a fresh all-time low of 68.87 amid sustained foreign fund outflows and the greenback's surge in overseas markets.

Meanwhile, the much-awaited Goods and Services Tax (GST) Council meeting, slated for Friday, was also postponed by a week.

“FPI flows have turned negative since US electron. Rising US bond yields and strong dollar overseas is a major headwind for an EM currency like Rupee. At the same time, falling interest rate differential post demonetisation and concerns over growth, is adding to the pressure on Rupee. However, we except RBI to remain vigilant. A range of 68:00-69:00 is seen on spot,” added Anindya Banerjee, Associate Vice President Currency Derivatives, Kotak Securities.

The S&P BSE Sensex ended down 192 points at 25,860 and the Nifty50 closed 58 points lower at 7,965. Among broader markets, BSE Midcap index was down 0.75% whereas the Smallcap index was up 0.34%.  

"Daily candle chart shows a hammer formation that indicates a bullish reversal. Huge volatility is seen today on the account of expiry of November series derivative contracts as investors will carefully analyze the economic effect of demonetization in short term before roll over the contracts into next months," said Abnish  Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments .

In overseas stock markets, most Asian stocks dropped as upbeat economic data strengthened the prospect for higher US interest rate. Investors fear that higher interest rates in the US will spark capital outflows from the emerging equity markets.   

The US stock market will remain closed today, 24 November 2016, because of the Thanksgiving holiday. US weekly jobless claims increased 18,000 to a seasonally adjusted 251,000 for the week ended 19 November 2016, the Labor Department said.

Back home, Tata Motors, NTPC, ICICI Bank, Adani Ports and GAIL are down 1%-3%. On the gaining side, Bajaj Auto, Infosys, SBI, TCS and Asian Paints are up 1%-2%.

According to reports, Tata group companies have seen a combined market capitalisation erosion of 15 per cent, or nearly Rs 1.16 lakh crore, in the past one month.

Retail investors in the group companies have become poorer by about Rs 11,000 crore from the day the sacking of group chairman Cyrus Mistry was announced.

IT shares are trading firm as rupee has weakened against dollar. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. Infosys, TCS and Wipro are up 1% each.

Infosys has put in Rs 31.6 crore in Stellaris Venture Partners, an early-stage venture firm founded by former Helion Advisors partners, the second such move in a venture capital firm through its $500-million innovation fund.

Among other shares, Zee Media Corporation (ZMCL) has moved higher by 7% to Rs 36.45, extending its Wednesday’s 10% surge on BSE after the company announced that the board approved acquisition of 49% stake in 92.7 BIG FM, the radio broadcasting business of Reliance Broadcast Network Limited (RBNL).

Jammu & Kashmir (J&K) Bank has slipped 7% to Rs 54.60, also its 52-week low on BSE in intra-day trade.