Markets open in red after Tuesday’s 770 point plunge

After plunging 770 points on Tuesday, the Indian equity indices opened in the red zone on Wednesday with both Sensex and Nifty down on global cues.

Sensex opened at down 29.65 points, or 0.08%, at 36,533.26 while the broader Nifty opened at 10,788.75 lower by 9.15 points, or 0.08%. Rupee opened at 72.20 to a dollar. At 9.10 am, the domestic currency was trading at 72.21, up 0.27% from its Tuesday’s close of 72.39. The 10-year government bond yield was at 6.515% compared with its previous close of 6.521%.

The markets dropped on Tuesday, the first day of trading after Gross Domestic Product (GDP) data released on Friday put economic growth at a six-year low. Although some of the drop can also be attributed to faltering trade talks between the US and China and US factory output declining for the first time in three years. Investors lost around Rs 2.55 lakh crore (in terms of market value) on Tuesday.

The government, on August 23, announced measures to boost the economy with steps such as making credit more easily available to companies, a roll-back on a tax on foreign portfolio investors, ways to revive demand in the stressed auto sector.

First Published: Sep 04, 2019 09:53 IST