The share markets and the Indian rupee continued their decline on Tuesday, tracking global markets. The Nifty 50 fell below the 10,200-mark and the Sensex shed the 34,000 level in early trade, while the rupee depreciated 18 paise to 73.74 against the dollar by 9.50 am.
Both share indices were down over 0.7% at 9.50 am – the Sensex was at 33,893.21, down 241.17 points, and the Nifty 50 traded at 10,165.30, lower by 79.95 points since close on Monday. The poor opening in the share markets and the increased demand for the United States dollar weighed the rupee down. On Monday, the rupee had fallen 24 paise to settle at 73.56 against the dollar.
The decline in share markets followed cues from Asian markets, which were hit by diplomatic concerns in Saudi Arabia over the death of a dissident journalist, Reuters reported. Two weeks after Jamal Khashoggi went missing in the Saudi consulate in Istanbul, Riyadh admitted on Saturday he was killed. United States President Donald Trump said on Monday he was not satisfied with Saudi Arabia’s response, while the United Kingdom, France and Germany have said Saudi Arabia must clarify how Khashoggi died.
Saudi Arabia is a major oil producer and invests heavily in financial markets.
IndusInd Bank was the top gainer and Asian Paints the top loser on both the Sensex and the Nifty 50. Tata Motors, HDFC and Yes Bank were the other leading stocks on the two indices. Wipro, Hindustan Petroleum, Bharat Petroleum and Indian Oil Corporation were also among the top five losers on the Nifty 50, and Wipro, Infosys, Tata Consultancy Services and Oil and Natural Gas Corporation on the Sensex.