Sensex drops 300 points, dragged down by losses in RIL, HDFC

Marco Green
August 3, 2020

The BSE Sensex was trading 303.74 points or 0.81 per cent lower at 37,303.15; while the NSE Nifty was down 77.15 points or 0.70 per cent at 10,996.30.

BSE bankex, finance, energy, oil and gas, realty, utilities and telecom indices fell up to 2.73 per cent, while, consumer durables, healthcare, metal and industrials ended in the green.

Shares elsewhere in Asia turned mixed as USA lawmakers struggled to hammer out a new stimulus plan amid a global surge of new coronavirus cases, though a squeeze on crowded short positions gave the dollar a rare bounce.

Domestic equity benchmark Sensex tumbled over 300 points in opening session on Monday tracking losses in index-heavyweights Reliance Industries and HDFC twins amid weak cues from global equities.

Gainers and losers of the day on the Sensex. These apart, the Nifty Financial Services index also fell 2.18 per cent dragged by SBI Life Insurance Company and HDFC Life Insurance Company.

The rupee too sank 20 paise and settled below the 75 per U.S. dollar mark.

In the broader market, the S&P BSE MidCap index fell 0.31 per cent to 13,717 and the S&P BSE SmallCap index gained over 1 per cent to 13,155.

The rupee opened on a weak note at 74.91 at the interbank forex market, and closed for the day at 75.01 (provisional) against the U.S. dollar, registering a decline of 20 paise over its previous close of 74.81 against the greenback.

Hong Kong's Hang Seng barometer was down 0.56 per cent while South Korea's KOSPI gauge was up 0.07 per cent.

Further, foreign fund outflow, concerns over rise in COVID-19 cases across the world kept investors cautious, they added.

Other Asian share markets were mixed as US lawmakers struggled to hammer out a new stimulus plan, while European stocks opened modestly higher on Monday.

China's Shanghai Composite index was up 1.75 per cent, after a survey showed China's factory activity expanded at the fastest pace in almost a decade in July.

The E-Mini S&P 500 futures traded 0.19 per cent lower, indicating a negative start for USA markets on Monday.

On the macro front, India's manufacturing sector activity contracted at a slightly faster pace in July as demand conditions remained subdued, PMI data showed.

That helped China's blue chips rally 1.6 per cent, offsetting worries about US-China relations.

The Indian Express is now on Telegram.

Other reports by Click Lancashire

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