The Sensex and Nifty fell to the red and the rupee slid to a record low against the US dollar.
- Rupee dropped 0.25 per cent to a record low of 78.97 per US dollar
- Nifty and Sensex on course for their worst month since March, 2020
- Domestic equity markets are likely to see their biggest foreign fund outflows this month since March 2020
The Sensex and Nifty fell and the rupee dropped to a record low against the US dollar on Wednesday. The NSE Nifty 50 index fell 0.53 per cent to 15,766.25, and the S&P BSE Sensex slipped 0.5 per cent to 52,910.42.
The rupee dropped 0.25 per cent to a record low of 78.97 per US dollar.
The share market fell after a four-session rally, as worries about high oil prices and inflation returned to the forefront, while Reliance gained after announcing a leadership change at its telecom unit.
Dampening sentiment further across Asian equities was overnight data that showed US consumer confidence dropped to a 16-month low in June, which had sent Wall Street sharply lower.
“Worries about crude prices, inflation, rate hikes and accompanying recession fears are coming back to the market after a few days of respite,” said Ajit Mishra, vice president, research at Religare Broking, Reuters reported.
“It’s still too early to say if the market has reached the bottom, the overall trend is still downwards with the negative flow of news.”
Interest rate and inflation worries have kept the Nifty and Sensex on course for their worst month since the pandemic-hit March of 2020. The blue-chip indexes had lost nearly 9 per cent this year, as of Tuesday’s close.
The domestic equity markets are likely to see their biggest foreign fund outflows this month since March 2020.
Overseas investors had offloaded a net $6.29 billion worth of equities this month, as of June 28, compared with a net selling of $4.63 billion in the same period last month, Reuters reported quoting Refinitiv data.
On Wednesday, the Nifty Bank index slid 1.4 per cent, while the Nifty FMCG index fell 1.3 per cent.
However, the country’s most valuable firm Reliance Industries helped plug some losses in the market with a 1.1 per cent gain. Billionaire Mukesh Ambani stepped down on Tuesday from the role of director of the telecoms arm of Reliance in favour of his son Akash, setting the stage for a leadership transition at his energy-to-retail conglomerate.
Tejas Networks jumped 7.5 per cent after Japanese chipmaker Renesas said it would work with the company on wireless network solutions including 5G.