SENSEX DROPS AS RUPEE HITS NEW LOW

Mumbai: The Sensex spiralled lower for the sixth straight session on Wednesday as a weak rupee and a widespread selloff in emerging market assets dented risk appetite.

The Sensex tumbled 139.61 points to end at an over two-week low of 38,018.31, while the Nifty slipped 43.35 points to 11,476.95.

HUL WAS the top loser in the Sensex pack, falling 2.45%, followed by Kotak Bank at 1.68%.

Mumbai, Sept. 5: Sensex spiralled lower for the sixth straight session on Wednesday as a weak rupee and widespread selloff in emerging market assets dented risk appetite.

Sensex tumbled 139.61 points to end at an over two-week low of 38,018.31, while the Nifty slipped 43.35 points to 11,476.95.

Sensex has now lost 878.32 points in six sessions — its longest string of losses in six months.

Global stocks declined as renewed trade war concerns and macro headwinds in Turkey, Argentina and other emerging markets took a toll on investor confidence.

On the domestic front, the rupee crashed to a fresh record low of 71.96 against the US dollar in intra-day trade on the back of rising bond yields.

Market sentiment was further dampened after a monthly survey showed that India's services sector activity fell in August from July's 21-month peak as new business orders declined.

The seasonally adjusted Nikkei India Services Business Activity Index fell from July's peak of 54.2 to 51.5 in August owing to weakest growth in new work in three months.

The 30-share Sensex, after opening a shade higher and advancing to 38,250.61 in early trade, quickly slipped below the 38,000-mark.

It touched a low of 37,774.42 during the day, before finally ending at an over two-week low of 38,018.31 — down 139.61 points or 0.37 per cent.

The 50-issue NSE Nifty too cracked below the 10,400-mark and hit a low of 11,393.85 before finishing 43.35 points, or 0.38 per cent down at 11,476.95.

Meanwhile, DIIs net sold shares worth `21.41 crore, while FPIs bought shares to the tune of `32.64 crore on Tuesday, provisional data showed.

“Global headwinds coupled with risk arising on account of surging oil prices and weak trend in EM currencies dragged the market.

“The selling pressure was witnessed across the market in which highly valued consumption and mid-cap stocks were impacted the most. Investors are likely to remain cautious as spike in yield and widening deficit will add to the risk of inflation,” said Vinod Nair, Head of Research, Geojit Financial Services.