NEW DELHI: Investors were hit by yet another rude shock in early trading as equity and currency markets opened deep in the red in Thursday's early trading.
The 30-share BSE
Sensex crashed more than 800 points in intra-day trading. The index opened at 35,820.53, losing 150 points in the morning. But a selling spree early on meant that it hit the 35,300-levels within no time. At 1.45 pm, the gauge was down 857.50 points at 35,118.13.
India facing economic crisis, says Nitin Gadkari blaming huge oil imports
Ahead of a key meeting of ministers to discuss the falling rupee and the nation's widening trade deficit, transport minister Nitin Gadkari said India is facing an "economic crisis" due to its huge oil imports. India, the world's third biggest oil importer, depends on overseas markets to meet 80 per cent of its oil needs.
The broader 50-share NSE
Nifty was also down 2.50 per cent and was battling to hold on to 10,600-levels.
Meanwhile, the rupee too continued its free fall, hitting a new low of 73.77 against the
US dollar, plunging 43 paise from the previous closing mark of 73.34. The rupee has been under the pump for quite some time now due to higher demand of US dollar, foreign fund outflow and brent crude prices which has now breached $85 per barrel mark.
Commerce minister Suresh Prabhu is expected to head an inter-ministerial meeting on Thursday discuss the depreciating rupee and widening trade deficit .
Global oil prices and macroeconomic concerns due to a widening current account deficit is taking its toll on the equities too.
On Tuesday (
which was a trading holiday in India
+ ), the rupee had weakened in the foreign futures market. A day later, the domestic currency opened at a new low and weighed on the sensex. Selling by Dalal Street traders intensified in the closing hours and the sensex lost around 400 points in the last one and half hours on Wednesday, plunging under the 36,000-levels for the first time since July in the process. The pressure on the markets stayed on in Thursday's early trading.
Jagannadham Thunuguntla, senior VP & head of research (wealth) at Centrum Broking, said despite the government’s decisive move about IL&FS, the markets were under relentless pressure on the back of crude oil touching multi-year highs and the rupee slipping to a fresh all-time low.
Government moves NCLT to change IL&FS management
The government move was seen as necessary because a liquidity problem at IL&FS was threatening to snowball into a debt crisis which would have wider implications for the markets. A series of defaults by the infrastructure financier had resulted in credit lines being completely cut out.
IL&FS group stocks continue to rally; surge up to 20%
New Delhi, Oct 3 () Shares of IL&FS group companies continued to remain in huge demand Wednesday, surging up to 20 per cent. The scrip of IL&FS Engineering and Construction Company zoomed 19.79 per cent, IL&FS Transportation Networks surged 19.29 per cent and IL&FS Investment Managers soared 9.
On Thursday morning, the IT stocks were once again the laggards with the Nifty IT index losing mo re than 2 per cent. Auto, financial services and bank sub-indices were also losing more than 1.50 per cent each.
