Sensex sees record plunge

Global weakness on account of the crash in Argentina’s peso, the continuing political unrest in Hong Kong and the long-drawn U.S.-China trade war led to the Indian benchmarks losing heavy ground on Tuesday, even as strong gains in Reliance Industries (RIL) helped the indices limit the day’s losses.The 30-share Sensex lost 623.75 points, or 1.66%, to close at 36,958.16, which was only marginally above the day’s low of 36,888.49.This was the second-highest single day fall for the Sensex in the current calendar year after July 8 when it had lost 793 points, or 2.01%.
The Sensex losses were led by the the HDFC pack – HDFC Bank and HDFC – along with banking and auto majors like Yes Bank, M&M, Bajaj Finance and Maruti Suzuki India among others.The Sensex losses were led by the HDFC pack — HDFC Bank and HDFC — along with banking and auto majors such as Yes Bank, M&M, Bajaj Finance and Maruti Suzuki India among others.RIL was the saviour for the benchmark on Tuesday as the diversified conglomerate, which has the second-highest weightage in the Sensex, gained over 12% in intraday trades on the back of a slew of announcements it made at its annual general meeting on Monday.Shares of RIL finally settled at 1,275, up 9.72%, thereby contributing nearly 360 points to the Sensex, which still closed deep in the red as 28 of its constituents lost ground.
The broader Nifty again fell below the psychological 11,000-mark to 10,925.85, down 183.80 points or 1.65%.“The correction in the Indian market was largely driven by escalating trade tensions between U.S. and China coupled with political unrest in Hong Kong and Venezuela and the crash in Argentina’s currency,” said Sanjeev Hota, head, research, Sharekhan.
Rupee at 6-month low
The weakness in equity markets spilled into the currency markets with the rupee plunging to a six-month low against the dollar amid uncertainties gripping the global market and a crash in the Argentine currency.The rupee ended 0.87% or 62 paise weaker against the dollar to close the day at 71.40.The rupee opened at 71.15, touched a high of 71.02 and a low of 71.40 against the dollar.Argentina’s peso plunged on Monday after the country’s centre-right leader Mauricio Macri performed poorly in primary elections

Source : https://www.thehindu.com/todays-paper/sensex-sees-second-record-plunge-of-year/article29088739.ece

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