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Sensex drops 450 pts on global selloff; Nifty tests 10,750

Weak rupee, surging crude prices and firming US bond yields weighed on market sentiment.

Updated: Oct 04, 2018, 09.47 AM IST
Sensex nosedives over 600 points; Nifty below 10,700
Sensex nosedives over 600 points; Nifty below 10,700
NEW DELHI: Indian equity benchmarks Sensex and Nifty opened with major losses on Thursday amid rupee's fresh fall against the US currency and weakness in other Asian markets.

Rupee's poor health, surging crude oil prices and firming US bond yields weighed on market sentiment.

Investors avoided riskier equities and turned to safe bets, including gold and treasury bonds.

The rupee hit a fresh record low of 73.77 against the American currency in early trade on Thursday after the dollar index stood tall, boosted by a spike in Treasury yields following upbeat US data and comments from Federal Reserve Chairman Jerome Powell that were seen as hawkish.

Higher US yields are anything but favourable for emerging markets, however, as they tend to draw away much-needed foreign funds while pressuring local currencies, Reuters reported.

Around 9:20 am, the Sensex was 442 points, or 1.23 per cent down at 35,533.69, while the Nifty was 115 points, or 1.06 per cent, down at 10,743.05.

In the 30-share Sensex index, only three stocks- Larsen & Toubro, Vedanta and ONGC - were trading with gains. Rest fell up to 3 per cent.

The Nifty index had four components - Larsen & Toubro, Hindalco, Bharti Infratel and Vedanta - trading in the green zone.

Reliance industries, Hero MotoCorp, Bharti Airtel, TCS and HDFC were the top losers in the Sensex basket of stocks at that time.

Barring capital goods, industrilas and metal, all sectoral indices were in the red on BSE at that time. BSE Energy and realty cracked over 2 per cent, with most components incurring losses.

Broader midcaps and smallcaps were in line with Sensex. The BSE Midcap and Smallcap indices fell up to 1.15 per cent in the early trade.

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