Stock markets sink with crashing rupee
By S Jha
New Delhi, September 26: Brutal selling on the bourses took the Nifty briefly below the psychological 17,000 mark, as the FIIs pressed ahead with dumping their stocks that plunged rupee to a record low at Rs 81.62 against dollar.
Both the Nifty and the Sensex are now at their two months low, while all round selloff has wiped out wealth worth Rs 11 lakh crore in the last two trading sessions.
The market selloff that began with the US Fed hiking the interest rate with three quarters to one remained unabated even on Monday session, with one share gaining against 11 losing on the bourses.
The FIIs net sold Rs 5101 crore, a whopping scale, while the DIIs had a net buy of Rs 3532 crore.
The record low of rupee that automatically helps the IT companies make more money because their earnings are mostly in dollars pushed the software services companies higher. Infosys and HCL Technology led the rally in the IT stocks, which was also lukewarm in the face of the brutal selloff.
The chartists are confident that the equity market is in downturn, as even a positive US Dow Jones Future failed to lift the sinking Indian equity market in the afternoon session.
Germany, the largest economy in Europe, is staring at recession, as the energy crisis deepens globally. True to what the Ukrainian President Volodymyr Zellenskyy had said in his virtual address to G7 Summit in Germany that the Russian war in his country would gain in more intensity in the Winter months, actions on the ground endorsed his views, as energy crisis-led global inflation was unabating.
With dollar strengthening against all global currencies, hot money is taking flight out of the emerging markets, including India, for safe investment in the US.
Private banks, metals and automobiles led the broader fall on the bourses, with the likes of Maruti, Mahindra and Mahindra, Tata Motors, Hindalco cracking heavily.
The private player in defence segment, Data Patterns, which had sunk by about five per cent in the first session, recovered to close in the green with gains, clearly rising with the government’s Atmanirbharta pitch in the defence manufacturing.
PowerGrid, which had been smashed in the previous sessions on the back of the speculation that the government will ask it to buy out REC smartly recovered from the day’s lows.
Veteran traders are advising the newcomers to stay away from the bourses, arguing that the equity market could give serious jolt to them with their wild moves.
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