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Sensex plunges on weak currency
September 11, 2018
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MUMBAI: The key Indian equity indices ended deep in the red on Monday with the benchmark Sensex losing 467 points and the Nifty50 down 151 points.

The domestic equity market was weighed down by a record low rupee and weak global markets.

The Indian rupee touched a new low of 72.67 earlier in the day which dampened the domestic investor sentiment. Globally, market sentiments were subdued on concerns that the US might impose further tariffs on Chinese imports.

Among the sector-wise indices, heavy selling activity was witnessed in banking, auto and oil and gas counters.

At 3.30pm, the wider Nifty50 on the National Stock Exchange provisionally closed at 11,438.10 points, lower by 151 points or 1.30 per cent from the previous close of 11,589.10 points.

The BSE Sensex, which had opened at 38,348.39 points, closed at 37,922.17 points (3.30pm), lower by 467.65 points or 1.22 per cent from the previous close of 38,389.82 points.

It touched a high of 38,354.52 points and a low of 37882.83 points during the day.

Fuel Prices

Meanwhile, a depreciating rupee and expensive crude oil further pushed domestic fuel prices to new record highs on Monday.

Petrol in Delhi rose by 23 paise to Rs80.73 per litre, while it rose by 22 paise, 25 paise and 23 paise in Kolkata, Chennai and Mumbai to Rs83.61, Rs83.91 and Rs88.12 a litre respectively, as per the Indian Oil Corporation (IOC) website.

Similarly, diesel price rose by 22 paise in Delhi and Kolkata to Rs72.61 and Rs75.46 per litre respectively, while it rose by 23 paise a litre to Rs76.75 and Rs77.09 per litre in Chennai and Mumbai respectively. Extra premium petrol is selling at Rs90.87 in Mumbai.

uel prices began an almost unbroken northward march since August 1. They fell only once on August 13 in the last 41 days. Prices surged on 29 days and remained unchanged on 11 days, and have been breaching record levels for more than a week now.

Sector experts say a weak rupee and high excise duty are major factors for the rise in fuel prices. The rupee on Monday touched an all-time low of Rs 72.67 against the US dollar.

Also, high global crude oil cost has become a major concern for the country which is a net importer of oil. The UK Brent crude oil price hovers around $77 per barrel.

Since the start of the calendar year, the petrol price in Delhi has gone up by 15.4 per cent from Rs69.97 on January 1, 2018. The hike in diesel price has been even more steep. It has gone up by 22 per cent since January 1, 2018 when it was Rs59.70.

The rising diesel price is expected to flare up inflation as the fuel is primarily used to transport most of the goods including agricultural products.

As per the country’s pricing mechanism, the domestic fuel prices are dependent upon the international fuel prices on a 15-day average and the value of the rupee.

Indo-Asian-News Service

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