Sensex Plunges by 120 Points in Early Trades

Picture of sensex in early trade unleash no good sentiments for rupee. The updates are bleak. Losses of Tuesday have all the more been exacerbated and the 30-share barometer has plummeted to 120 points.

The True Picture

Stocks of FMCG, metal, auto and capital goods sectors have come across a major loss in the early trade. Auto and realty has also been struck by the heavy wind. Nifty witnessed a plunge to touch the turf of 5,500 exhibiting the lowest position since April 12, 2013. In the last 11 sessions, the 50-share benchmark BSE has dropped by 500 points.

The rupee is in a muddled state after touching a record low of 61.81 on Tuesday. A recent update has said that the rupee is down by 50 paise to 61.27 against US dollar. These are the early trade figures on the Interbank Foreign Exchange. The reason attributed for the same is heavy demand for US currency by the importers.

Sarvendra Srivastava, a market analyst, has said that the point of focus at this juncture and from here on must be dollar rupee. Nervous pangs have also brought another angle in light that Reserve Bank can bring a sudden surge in rates to protect rupee.

ITC, which has the major stakes in Nifty, has suffered a decline of three percent. Other stocks that were snubbed in the recent market trend like the refiner BPCL, realty major DLF, and BHEL have come across a share of luck. They stand at top three positions on Nifty.

Rest of the region of Asia, Hang Seng index traded low by 0.76% in the early trade. Further Japan’s Nikkei index has fallen by 1.70%.

In the words of brokers, there is a possibility of dampening of US trigger as Asian bourses have weakened. Yesterday’s trade ended 0.60 percent lower for the US Dow Jones.