Equities fall steepest in 10 months on global cues, weak rupee

BSE Sensex and NSE Nifty open lower on Friday

Mumbai: The BSE Sensex came under relentless selling pressure in early trade Friday, plunging almost 300 points on heavy selling in banking, financial, capital goods and FMCG stocks amid sustained foreign fund outflows and weak global cues.

Market observers pointed out that investors' sentiments were hampered by a likely US rate-hike in December which was signalled by the US Federal Reserve on Wednesday night.

Equity benchmarks Sensex and Nifty lost heavily in wake of North Korea fears.

Stocks across Asia fell after North Korea threatened to test a hydrogen bomb in response to U.S. President Donald Trump's speech at the United Nations earlier this week.

On a weekly basis, the BSE Sensex dropped by 350.17 points, or 1.08 per cent, its biggest fall since August 11.

"In view of the economic slowdown, the government is reported to be open to allowing the fiscal deficit to exceed this year's target as it considers a stimulus package in the range of Rs 40,000-50,000 crore by way of increased spending", Desai told IANS.

Nifty Realty index slid over 2 per cent as top drag DLF plunging 5 per cent.

In terms of investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 1,241.73 crore while domestic institutional investors (DIIs) purchased stocks worth Rs 521.17 crore.

Meanwhile, the rupee fell below the 65 mark for the first time in over five-and-a-half months on Friday on concern that fiscal deficit will widen after the government said it was considering measures to boost growth.

The rupee hit near six-month low against the dollar in day trade which dampened the sentiment further.

The Indian currency closed 54 paise lower to 64.81 per dollar on Thursday.

The laggards were ICICI Bank, Tata Steel, Coal India, Axis Bank, Bajaj Auto, L&T, SBI, ONGC, Reliance Industries, Hero MotoCorp, TCS, Infosys and NTPC, falling by up to 2.09 per cent.

Nifty Metal index melted up to 3 per cent, with Jindal Steel & Power plunging over 6 per cent.

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