Sensex Ends Below 37,000 On J&K Developments And Global Sell Off

Indian indices amid an intense global sell-off were dragged sharply lower in trade today. Domestic factors also came into play including the J&K crisis, which now will be split into two separate UTs. After the announcement of Article 370 being abolished by the Home Minister, Amit Shah, Sensex saw mild recovery but for a short time. In the afternoon trade, Nifty and Sensex were still trading lower by over 1%.

At the closing, Sensex was trading down by 418 points at 36699 while Nifty closed below 11,900 points at 10862, down by 134 points or 1.23%

BSE midcap and small cap indices lost over 2% in trade today. All of the sectors barring IT were trading in the red. IT stocks gains on the back of weakness in the rupee against the dollar currency.

Shares of eClerx Services fell 12 percent to hit more than six-year low after HDFC Securities downgraded the stock due to subdued June earnings result.

DHFL also lost 11% in trade today after its auditor Deloitte has been reported to resigned from its duties.

Rupee also was spooked to an eight-month low of 70.60 per US dollar in intra-day trade after yuan also declined and global stock markets saw heavy sell-off. Last the rupee quoted at 70.47 per US dollar.

Asian markets have declined sharply due to decline in Chinese Yuan beyond levels of 7 against the dollar, which is reflective of the fact that the Asian nation is ready to see its local currency weaken as trade spat between the US and China takes a further negative turn.

US indices also tanked dimming hopes of a near term resolution to the US-China trade war situation.

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