Sensex sinks 360 points as Saudi purge stokes inflation fears

  • Sensex sinks 360 points as Saudi purge stokes inflation fears

Sensex sinks 360 points as Saudi purge stokes inflation fears

However, it succumbed to profit-booking in late afternoon trade and slumped to 33,157.68, before finishing at 33,218.81, down 151.95 points or 0.46 per cent.

The 30-share index rebounded by 52.74 points, or 0.15 per cent, to 33,423.50.

Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined.

Indian shares rose on Thursday with the BSE benchmark index Sensex rising 245 points to 33,463.80 and the NSE Nifty gaining 65 points to 10,368.45. Japan's Nikkei, however, was down 0.28 per cent after hitting a 25-year high in yesterday's trade. "Major Asian markets have ended on a positive note, barring the KOSPI index, while European indices like FTSE 100 and CAC 40 traded lower", Jasani added.

A similar trend was witnessed in the broader markets as investors preferred to take away profits at record levels, pulling down the mid-cap index by 1.47 per cent and small-cap by 1.35 per cent.

On the currency front, the rupee weakened by 35 paise to close at 65.03 against the U.S. dollar from its previous close at 64.68.

"India needs to keep a cautious eye on the surge in global crude oil prices as every $1 per barrel rise in crude prices leads to its import bill rising by $1.33 billion".

Pharma stocks on the contrary pared intraday gains.

Vinod Nair, Head of Research, Geojit Financial Services, said: "Political disturbance in Saudi is triggering high volatility in the crude prices, which is negative for India leading to depreciation in rupee".

Foreign portfolio investors (FPIs) net purchased shares worth Rs 461.47 crore Tuesday, as per provisional data.

PSU Bank stocks once again edged up as the Nifty PSU Bank sub-index gained 1.55 per cent during the day. Among the heavyweights that are scheduled to report their quarterly earnings during the day are Tata Motors, HPCL, Tata Motors, HPCL, IGL, India Cements, Jindal Steel, NHPC, Bajaj Electricals among others. It was followed by Jaiprakash Associates (5.08 million), Reliance Communications (4.07 million) and Tata Motors (3.18 million).