Share Market: On Tuesday, BSE Sensex fell by a slight 16 points, which put a brake on the ongoing rally in the local stock markets for the last three trading sessions. Continued withdrawal of capital from foreign institutional investors, amid a weak trend in Asian and European markets, continued to weigh on the market. The 30-share BSE Sensex closed at 64,942.40, down 16.29 points, or 0.03 per cent.
It had fallen to 320.59 points during trading. National Stock Exchange’s Nifty also closed at 19,406.70 points with a slight decline of 5.05 points, or 0.03 percent. The biggest Sensex losers were Bajaj Finance, JSW Steel, Reliance Industries, Mahindra & Mahindra, ITC, Tata Consultancy Services, Wipro, HDFC Bank, Larsen & Toubro and Bharti Airtel.
On the other hand, shares of Sun Pharma, NTPC, State Bank of India, IndusInd Bank and Axis Bank are profitable.
China’s role in the global market
As Vinod Nair, head of research at Geojit Financial Services, pointed out, the market faced a lot of headwinds. This results in the beginning of elections in some important states. In addition, world markets were also on a weak note with China’s exports falling more than expected.
The decline in Chinese exports is indicative of a continuing decline in worldwide trade. He said that despite the decision of Saudi Arabia and Russia to extend the supply cut period, the price of crude oil has softened. This gives a good sign to India amid the ongoing tension at the global level. Long-term returns will be supported by decline in US bond yields and better quarterly results of companies.
Profit in BSE medium cap and small cap
The BCE Midcap index gained 0.53%, while the Smallcap index gained 0.38%. In other markets of Asia, South Korea’s Kospi, Japan’s Nikkei, China’s Shanghai Composite and Hong Kong’s Hang Seng were in loss. A declining trend was seen in Europe’s biggest markets in early trading.
American markets remained in the lead on Monday. Brent crude, the international oil benchmark, fell 2.12 percent to $83.37 per barrel. According to stock market data, foreign institutional investors sold shares worth Rs 549.37 crore on Monday.
Rupee falls five paise to 83.26 per dollar
The rupee fell five paise to close at 83.26 (provisional) in narrow range on Tuesday. The Indian currency weakened due to worldwide stability of the US currency and continued withdrawal of foreign funds. Forex traders said the fall in domestic stocks also had an impact on the local currency.
Whereas the fall of rupee remained limited due to improvement in crude oil prices. The rupee opened at 83.23 against the US dollar in the interbank foreign exchange market and after touching a low of 83.27, finally closed at 83.26 (provisional). Due to this, the rupee weakened by five paise against the dollar. On Monday, the rupee had closed at 83.21 dollars.
Forex traders said trading in rupee terms would be limited. The dollar index, which reflects the US dollar’s position, meanwhile, rose 0.37% to 105.60.