Market in grip of bear hug: Nifty50 trades below 17,000 points, rupee hits new low

Market in grip of bear hug: Nifty50 trades below 17,000 points, rupee hits new low

The benchmark Sensex and Nifty50 indices continued to remain under pressure, reflecting global market weakness on recession fears and the dollar’s rise against other currencies.

The Sensex opened 510 points lower at 56,678, while the Nifty50 traded below 17,000 levels at 16,889 — down 117 points.

“The bears are likely to witness a rough session and open Wednesday’s trading on a sour note, in sync with the decline in other Asian indices. Equity markets around the world are extremely concerned that the Federal Reserve’s war on decade-high inflation could send the US economy into recession and have a knock-on effect on other economies as well,” Prashanth Tapse, Research Analyst – Senior VP (Research) at Mehta Equities.

In addition, investors will be keeping a close eye on the RBI’s bi-monthly monetary policy review meeting, which begins today. The RBI is also widely expected to follow the Fed’s lead and raise interest rates on September 30. The RBI has already raised interest rates by a total of 140 basis points three times in a row.

The Indian rupee weakened to another low of 81.94 on Wednesday amid tightening monetary policy by central banks and concerns over India’s record trade deficit.

“Sentiment on Dalal Street also remains clouded by lingering concerns about corporate profits in India, which could come under severe pressure from inflation, economic downturn and soaring interest rates. Also, FIIs exiting local stocks in recent sessions could also dent the market sentiment. The street is now eagerly anticipating the September MPC Meet RBI to seep through on Friday,” Tapse added.

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All sectoral indices were trading in the red except for auto and pharmaceutical stocks. The IT index was flat and rose for several sessions on the back of a rising dollar as the sector earns most of its revenue in dollars.

Top winners % change The best loser % change
Sun Pharmaceuticals 1.35% IndusInd Bank -1.90%
M&M 1.17% NTPC -1.67%
Dr. Reddy’s labs 0.99% ONGC -1.49%
Tata Motors 0.58% SBI Life Insurance -1.42%
Eicher motors 0.54% HDFC -1.40%

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