Market litmus turns red as shares erase gains; rupees hits fresh record low

Indian shares closed lower on Tuesday, giving up more than 1 per cent gains made during the day, as investor sentiment soured in global markets, while rupee hit a fresh record low on concerns of a bigger current account deficit.

The Nifty50 Index ended down 0.15 per cent at 15,810.85, while the S&P Sensex dropped 0.2 per cent to 53,134.35. Both indices had gained over 1 per cent in morning trade.

US stock futures and European shares fell, while the euro sank to a two-decade low versus the dollar.

The Nifty IT Index fell 0.7 per cent.


“The US were closed on Monday (Fourth of July) and are starting in negative territory. It is getting cascaded to European as well, which might have driven investors in domestic to take profits,” said Ajit Mishra, vice-president-research, Religare Broking.

“The rupee hitting fresh lows has become constant and there is caution with earnings season setting. The moment investors see markets turning, it triggers a notion they should also book profits before it evaporates,” said Mishra.

The Nifty’s volatility index, which indicates traders’ expectations about market instability over the next 30 days, was down 0.9 per cent at 20.7875.

Among individual gainers, PTC India Financial Services jumped nearly 20 per cent after the non-banking financial company said an independent audit issued a ‘satisfactory report’ after deeming that the company maintained sufficient transparency.

PTC India Financial Services has been under the Indian markets regulator’s radar for corporate governance issues. Marksans Pharma soared 17.8 per cent after a proposal for a share buyback.

ITC fell 1.7 per cent and was the top loser on the Nifty50 Index.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button