Stock markets, plunged for the second straight day with the BSE Sensex falling 509 points to close at 37,413 today.
The losses in the domestic markets came amid weakness in Asian peers amid concerns on the US-China trade front.
NSE benchmark index Nifty declined 150 points to settle at 11,287. A selloff across sectors along with the rupee’s plunge to a fresh life-time low dragged the indices lower. Forty four stocks on the 50-scrip Nifty index finished lower.
Tata Steel, Tata Motors, ITC, Power Grid, Hero MotoCorp and Tech Mahindra, closing around 2-4 per cent lower, were among the top laggards on the Nifty 50.
The NSE’s sectoral indices of banking, auto, FMCG, metals, energy and pharma finished the day with losses of at least 1 per cent.
AK Prabhakar, head of research at IDBI Capital, attributed the fall in the markets to rupee depreciation and expensive valuations. The market has been in a highly overbought zone and is now re-adjusting itself, he told .
DBS Bank said it expected sustained pressure on the rupee with factors such as higher oil prices, widening current account deficit and the Federal Reserve’s rate hike cycle likely pushing it towards 75 per dollar levels.
Mr Prabhakar expects the Nifty to come down to 11,000 levels in next 1-2 weeks.
Asian shares were struggling to avoid a ninth straight session of losses, with MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.15 per cent.
Fund outflows continued to batter the markets.>