Sharp losses in equity market for second day after Budget; rupee falls by 16 paise against US dollar

The BSE Sensex dipped below the 35,000-level, plunging around 546 points in opening trade on Monday, on heavy losses in metal, realty, capital goods, banking and oil and gas stocks amid a global rout in equity markets.

The BSE 30-share barometer tanked 545.95 points, or 1.55%, to 34,520.80. The gauge had lost 1,216.50 in the previous four sessions following imposition of long-term capital gains of 10% on equities in the Budget 2018.

All sectoral indices led by realty, metal, capital goods, healthcare and bankex were trading in the negative terrain, falling by up to 3.47%.

The NSE Nifty was trading down by 173.80 points, or 1.61%, at 10,586.80.

The laggards were Yes Bank, HDFC Ltd, SBI, Axis Bank, Hero MotoCorp, Bajaj Auto, Tata Steel, Hind Unilver, L&T, M&M, Adani Ports, Kotak Bank and RIL, falling by up to 3.89%.

The rupee depreciated by 16 paise to 64.22 against the US dollar in early trade at the interbank forex market today amid sharp losses in equity markets. A currency trader said increased demand for the US currency from importers and banks and persistent losses in domestic equity markets weighed on the rupee.

On Friday, the rupee weakened by 4 paise to 64.06 a dollar as forex traders appeared cautious in view of upward revision of fiscal deficit target and the net borrowing for the current fiscal in the Union Budget. Foreign investors had put in USD 387 million in equity and debt markets on last Friday.