Mumbai: The rupee dropped to a record low on Friday against US dollar. But Sensex recovered from Thursday’s slump and climbed by around 1000 points on Friday before shredding some gains in the early trading. Around 2pm, Sensex was up by over 500 points. The rupee breached Rs 93 mark for the first time. This comes at a time when crude oil prices have witnessed a surge amid the conflicts in West Asisa.
Investors reacted to the intensifying conflict across West Asia. The tension has disrupted energy infrastructure. West Asian oil shock prompted foreign investors to pull out more than $8 billion from Indian stocks this month in the largest outflow since January last year, reported Reuters.
Brent crude stays above $100 per barrel. There is also uncertainty over uninterrupted supply. Foreign institutional investors (FIIs) have intensified selling of Indian equities amid the uncertain times.
According to experts, a weakened rupee with high oil prices may lead to imported inflation in the country.
But on the domestic equity market front, the Sensex rebounded from Thursday’s crash, surging 960.67 points, or 1.29 per cent, to 75,167.91, while Nifty was up 311.50 points, or 1.35 per cent, to 23,313.65 on Friday. Sensex climbed more than 1,000 points before shedding some of its early gains as the trading proceeded.
Gainers: Banking, IT, metals and PSU banks are leading.
FMCG and healthcare sectors are also steady.
Overall situation: Appears positive supported by widespread buying across sectors.
