Weak Rupee, Rate Hike Fears Pull Sensex Down in Morning Trade


Mumbai, Dec 15 (IANS): The falling rupee and fears that the Reserve Bank of India will hike rates further because of high inflation, pulled down a benchmark index for Indian equities Thursday morning.

The rupee fell to 54.30 to a dollar in early trade Thursday -- a new low as demand for the US currency from importers amid volatile global economic conditions continued to pull down the Indian currency.

The RBI will conduct its mid quarterly review of monetary policy Friday.

The 30-scrip sensitive index (Sensex) of the BSE, which opened at 15,739.05 points, was ruling at 15,726.86 points, about 15 minutes into trade, 154.28 points or 0.97 percent down from its previous close at 15,870.35 points.

Data released Wednesday showed headline inflation at 9.11 percent in November still above comfort levels of policymakers.

The 50-scrip S&P CNX Nifty of the National Stock Exchange also was trading lower at 4,715.9 points, down 0.99 percent or 47.35 points from its previous close.

Broader markets were also in the red. The BSE 500 index was down 1 percent.

  

Top Stories


Leave a Comment

Title: Weak Rupee, Rate Hike Fears Pull Sensex Down in Morning Trade



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.