Rupee crashes to an all-time low of 73.81 against the dollar
A surge in global crude prices, a fall in the rupee, hardening bond yields and selling by foreign investors affected sentiment in the equity market with the benchmark indices shedding more than 2% each to close at four-month lows.
The highly fragile investor sentiment saw over 1,900 stocks ending in the red on the BSE, as against only 753 gainers. Nearly 290 stocks hit their lower circuit on the BSE that saw all the sectoral indices register heavy losses.
The 30-share Sensex ended Thursday at 35,169.16, down 806.47 points or 2.24%. The broader Nifty settled at 10,599.25, shedding 259 points or 2.39%.
“Rising crude price, coupled with currency depreciation, has been the key macro concern for the market as it can make the task of fiscal management challenging amid rising bond yields,” said Motilal Oswal Financial Services in a note on Thursday.
Brent crude is trading near $87 per barrel — a level last seen in October 2014.
After touching a new low of 73.81 against the dollar, the rupee cut some losses before closing at 73.58, an all-time closing low, compared to the previous close of 73.34. The rupee has depreciated around 15% in 2018 and is the worst-performing currency in Asia.