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CliQ INDIA > National > Share market closes in red; rupee hits all-time low | CliqExplainer
National

Share market closes in red; rupee hits all-time low | CliqExplainer

cliQ India
cliQ India
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Highlights
  • Market declines with major stocks facing heavy sell-off pressure.
  • Rupee hits all-time low due to inflation and dollar rise.

The Indian stock market ended lower on Thursday, driven by heavy sell-offs in key stocks like Reliance Industries, Larsen & Toubro (L&T), and Hindustan Unilever (HUL). Investors remained cautious, awaiting the release of retail inflation data, which could impact market trends on Friday.

The Bombay Stock Exchange (BSE) benchmark Sensex fell by 236.18 points or 0.29% to close at 81,289.96. During the trading session, it dropped by as much as 314.5 points or 0.38% to reach an intraday low of 81,211.64. The National Stock Exchange (NSE) Nifty also declined by 93.10 points or 0.38%, ending the day at 24,548.70.

Among the laggards in the Sensex pack were NTPC, Hindustan Unilever, Tata Motors, Maruti Suzuki, L&T, Reliance Industries, Asian Paints, and State Bank of India, all closing with significant losses. However, on the gaining side, stocks like Bharti Airtel, IndusInd Bank, Tech Mahindra, Infosys, Adani Ports, and Tata Consultancy Services managed to end in green territory.

Globally, Asian markets including Seoul, Tokyo, Shanghai, and Hong Kong closed on a positive note, while European markets exhibited a mixed trend. On Wall Street, the overnight session on Wednesday saw most indices closing higher. Meanwhile, the global crude benchmark, Brent Crude, rose by 0.30% to settle at $73.74 per barrel.

Data from the exchanges revealed that foreign institutional investors (FIIs) offloaded equities worth ₹1,012.24 crore on Wednesday, adding to the downward pressure on the market.

The Indian rupee continued its slide, touching an all-time low against the US dollar. Amid a strong dollar index and anticipation of domestic inflation data, the rupee opened at 84.85 in the interbank forex market and hit an intraday low of 84.88. It eventually closed at 84.87 per dollar, marking a decline of 4 paise from its previous close. On Wednesday, the rupee had marginally gained by 2 paise to settle at 84.83 per dollar.

Analysts suggest that inflation data and global cues will play a significant role in shaping market movements on Friday. The persistent weakness in the rupee and ongoing sell-offs by foreign investors could add to the volatility in the coming sessions.

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