Nifty tests 16,300 mark.
Nifty tests 16,300 mark.
Equity benchmark Sensex fell nearly 600 points in early trade on Friday, June 10, 2022, following weakness in IT, banking and finance stocks amid sluggish investor sentiment in global markets.
Traders said that apart from this, the weakening of the rupee also affected the domestic stock markets.
The 30-share index was trading 597.2 points or 1.08 per cent lower at 54,723.08 in opening deals. Similarly, the Nifty closed at 16,301.80, down 176.30 points or 1.07 per cent.
Wipro was the top loser in the Sensex pack, falling 3.38 per cent, followed by Tech Mahindra, Tata Steel, Infosys, Kotak Bank, Bajaj Finance, HDFC Twins and TCS.
On the other hand, POWERGRID, NTPC and Titan were among the gainers.
In the previous session, the 30-share BSE Sensex closed at 55,320.28, up 427.79 points or 0.78 per cent. Similarly, the broader NSE Nifty ended 121.85 points or 0.74 per cent higher at 16,478.10.
The rupee fell by 8 paise to a record low of 77.82 against the US dollar in early trade.
Elsewhere in Asia, shares in Tokyo, Hong Kong and Seoul were trading with deep losses in mid-session deals, while Shanghai was in the green.
Stock exchanges in the US closed sharply lower in the overnight session.
Meanwhile, international oil benchmark Brent crude fell 0.65 per cent to $122.27 a barrel.
FII net seller
Foreign institutional investors (FIIs) remained net sellers in the capital market as they sold shares worth ₹1,512.64 crore on Thursday, according to exchange data.
According to a report by India Ratings, the country’s current account deficit is likely to reach a three-year high of 1.8 per cent or $43.81 billion in FY12 against a surplus of 0.9 per cent or USD 23.91 billion in FY12.
According to rating agency Icra, operating profit margins of information technology companies may shrink by up to 1.50 per cent in the near future as wage cost inflation lags behind high attrition hit players in the USD 200 billion-plus industry.
Moody’s Investors Service on Thursday said most rated companies in India have the buffer to withstand 10-15 per cent depreciation of the rupee.