Market in the grip of a bear hug: Nifty50 trades below 17,000 points, rupee hits a new low

• Sensex opened 510 points lower at 56,678 while the Nifty50 below the 17,000 levels at 16,889, lower by 117 points.
• The Indian rupee depreciated to a new low of 81.94 on Wednesday.
• All sectoral indices are trading in red except auto and pharmaceuticals.
• IT index was flat and has been gaining in the couple of sessions on the back of rising dollar.

Benchmark indices Sensex and Nifty50 continue to remain under pressure mirroring weakness in the global market on fears of recession and dollar climbing against other currencies.

Sensex opened 510 points lower at 56,678 while Nifty50 traded below 17,000 levels at 16,889 - lower by 117 points.

“Bears are likely to witness a rough session and start Wednesday's trade on a sour note, in sync with the slump in other Asian indices. Stock markets across the globe are extremely concerned that the Federal Reserve's war against decades-high inflation could push the US economy into a downturn and have a spill-over effect on other economies too,” Prashanth Tapse, research analyst - senior VP (Research) at Mehta Equities.

Besides, investors will closely watch RBI’s monetary bi-monthly review meeting that starts today. It is also widely expected that the RBI would follow the Fed’s lead and raise interest rates on September 30. RBI has already raised interest rates by an overall 140 basis points three times in a row.

The Indian rupee depreciated to another low at 81.94 on Wednesday on the back of monetary policy tightening by central banks and on concerns about India’s record trade deficit.

“Sentiment at Dalal Street also remains clouded by lingering concerns over corporate India’s earnings which could come under heavy pressure from inflation, an economic downturn, and soaring interest rates. Also, FIIs have been deserting local equities in recent sessions could also dent market sentiment. The street is now anxiously awaiting the RBI September MPC Meet outcome to trickle in on Friday,” added Tapse.

All sectoral indices were trading in red except auto and pharmaceutical stocks. IT index was flat and has been gaining in the couple of sessions on the back of rising dollar considering the sector earns majority of their revenue in dollars.



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