Sensex Nosedive 1017 Pts, Nifty Closes At 16202; Rupee Touches Fresh Low

Sensex, Nifty extended fall in Friday's session after a day's breather on Thursday. The fall is largely on the back on weak global cues and as the US markets in the last session closed down sharply with Nasdaq dropping by the highest 2.75%. Furthermore, the crucial US inflation is due to be released making investors nervous. Also, the high crude prices is also weighing on world equity which last was trading at over $123.3 per bbl.

Sensex Nosedive 1017 Pts, Nifty Closes At 16202; Rupee Touches Fresh Low

At the close, Sensex lost by 1017 points, while Nifty ended lower by 276 points at 16,202. Top Nifty gainers in the weak market have been Asian Paints, Grasim, Apollo Hospital, Nestle and Dr Reddys Lab, while losers include Kotak Mahindra Bank, Bajaj Finance, HDFC, Reliance and Hindalco.

Among NSE sectoral indices, the pressure is seen mounting on the financial services, IT and private bank counter. The broad based sell-off left no sector in the green. The correction that has spanned has led to steep declines in many of the counters.

Meanwhile, rupee in trade today hit a fresh low of 77.88 per US dollar. "Rupee hit its fresh all time low but in the last few sessions has been very resilient and is consolidating in a narrow range despite volatility in domestic and global equities and strength in the dollar against its major crosses. On the domestic front, RBI has been very actively intervening and curtailing the volatility for the rupee. Global crude oil prices have been rallying thereby putting pressure on inflation and leading to higher trade deficit. Dollar is getting support at lower levels ahead of US inflation number that will be released today and FOMC policy statement that is scheduled next week. Expectation is that the Fed could continue to raise rates and maintain its hawkish stance. We expect the USDINR (Spot) to trade with a positive bias and is gradually headed towards 78.50 levels. On the downside 77.20 will continue to act as an important support in the short term."

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