After opening the day in the red, share markets in India witnessed volatile trading activity throughout the day and ended the day deep in negative territory. Sectoral indices ended the day in red, with stocks in the IT sector and stocks in the auto sector losing the most.
At the closing bell, the BSE Sensex stood lower by 551 points (down 1.5%) and the NSE Nifty closed down by 150 points (down 1.4%). The BSE Mid Cap index ended the day down 1.1%, while the BSE Small Cap index ended the day up by 0.2%.
Asian stock markets finished in green. As of the most recent closing prices, the Hang Seng was up by 1% and the Shanghai Composite was up by 1.1%. The Nikkei 225 was flat. Meanwhile, European markets too were trading on a negative note. The FTSE 100 was down by 0.3%, The DAX, was down by 0.8% while the CAC 40 was down by 1.1%.
The rupee was trading at Rs 73.43 against the US$ in the afternoon session. Oil prices were trading at US$ 85 at the time of writing.
In news from the economy. The Rupee hit a new lifetime low of 73.43 per US dollar today as crude oil prices continued to rise unabated.
Oil prices firmed on expectations of a tighter market once US sanctions would start targeting Iran's petroleum industry from next month, although a strong dollar and rising US crude supply curbed gains. Prices, however, remain at highest levels since November 2014.
The Indian rupee is the worst performer in Asia in 2018. It has fallen by around 15% against the US dollar this year.
Indian Rupee is the Worst Performing Currency in Asia
The rupee is under pressure due to a strong dollar and high oil prices. Similarly, the spill-over from the emerging-market turmoil in Argentina and Turkey is weighing on the rupee.
The falling rupee is also triggering sales of bonds and stocks, which in turn is further pressuring the rupee.
Nevertheless, last week, the government announced several measures. This includes cutting down non-necessary imports, removal of withholding tax on rupee-denominated bonds, and easing overseas borrowing norms.
That said, in the near term, the rupee being under pressure could benefit export-oriented businesses.
Moving on to news from stocks in the engineering sector. L&T share price was in focus today after the company bagged a major order.
The company said that its buildings and factories business had won a Rs 30.4 billion order from Bangalore International Airport Ltd (BIAL) to construct terminal-2 of the Kempegowda International Airport, Bengaluru.
The scope of work includes design, engineering, procurement, construction, testing and commissioning of terminal-2, including integration of services and utilities along with the airport's systems, support facilities and buildings
Once completed, the 2,55,000 square meter phase 1 of T2 will augment the capacity of the airport by 25 million passengers per annum (MPPA).
L&T Construction is also currently constructing the New South Parallel Runway (NSPR), apron and other auxiliary buildings at the Bengaluru Airport.
L&T share price ended the day down by 0.2%.
Meanwhile, Maruti Suzuki share price was in focus today after the company recalled 640 units of its light commercial vehicle (LCV) Super Carry.
The company recalled the domestically sold LCV units to inspect and fix a possible defect in the fuel pump supply.
The recall covers Super Carry units manufactured between January 20 and July 14, 2018.
Notably, the company has sold over 10,000 units of the LCV.
Maruti Suzuki share price ended the day down by 2.9%.
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