Indian rupee hits lifetime low, stocks tumble on global markets sell-off
Sensex plunged more than 2 per cent on Thursday, at their lowest closing levels since April, mirroring the markets rout across the globe amid rising trade concerns and expectation of rate hikes in the United States.
The benchmark BSE Sensex closed down 2.19 per cent at 34,001.15. The broader NSE Nifty ended 2.16 per cent lower at 10,234.65.
Shares of oil and gas companies were among the nine stocks that withstood the selloff, after a finance ministry source`s comments on subsidies. Hindustan Petroleum Corp Ltd was the top percentage gainer at 16.2 per cent, report said.
Earlier, attributing the slump in stock and currency markets to external factors, a finance ministry official Thursday said more steps will be taken to check current account deficit (CAD) and hoped that the rupee would appreciate.
While the stock market benchmark Sensex in the early trade crashed over 1,000 points, the rupee fell to a record low of 74.45 to a dollar.
"What happened in US yesterday had a ripple effect here today. The IMF has downgraded global growth rate, US growth rate for next year, both these had impact on markets," the official told reporters.
He said Indian market is still relatively stable compared with other equity markets. "The rupee may remain firm if oil prices stay range bound. We do believe that rupee should appreciate from this level," the official added.
The BSE Sensex, in the opening trade, crashed 1,030 points to slip below the key 34,000-mark, tracking a global sell-off as the rupee hit yet another record low of 74.45 against the US dollar.
The rupee has lost more than 13 per cent since the beginning of 2018. The CAD, difference between inflow and outflow of foreign exchange, widened to 2.4 per cent of GDP in the April-June quarter.