Sensex once again feeling the heat

Mumbai: Stocks dip today for the seventh day in a row as the Sensex plunged a sharp 440 points to close at an over three-month low, triggered by a weakening rupee on concerns that foreign capital will move out sooner than later after US Federal Reserve chair Janet Yellen’s comments.

Mood was downcast at the 50-share NSE Nifty too, which after regaining the key 9,900-mark at one stage closed down 135.75 points, or 1.38%, at 9,735.75—a level last seen on 11 August when it closed at 9,710.80.

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“Market extended losses while the rupee sank to a 6-month low on continued outflow of foreign funds. Additionally, slowdown in GST (goods and service tax) tax collection dented sentiment and investors expected that the GST-led disruption is likely to extend and will hurt earnings for the next few quarters,” said Vinod Nair, head of research, Geojit Financial Services Ltd.

Stocks of Divi’s Lab crashed 11.60% to Rs 850.15 after the company said it has received six new observations from the US Food and Drug Administration (FDA) after inspection of its Visakhapatnam unit. Selling was maximum in the BSE realty index, down 2.66%. Healthcare, capital goods and power stocks also kept low.

 

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