Rupees tumbles to five month low

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Rupees tumbles  to five month low

Key benchmark indices extended initial losses and hit fresh intraday low in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex, was down 368.99 points or 1.38% at 26,449.83. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was down 141.35 points or 1.7% at 8,154.95. The Sensex and the Nifty, both hit their lowest level in almost one week. Heavy selling in mid-cap and small-cap stocks continued in today's trade.

Likely short term negative impact on the economy of the recent demonetization of higher denomination notes by the Indian government and uncertainty over the future policies of newly elected US president Donald Trump and their impact on the global economy continued to weigh on sentiment.

The Sensex lost 497.81 points, or 1.85% at the day's low of 26,321.01 in morning trade, its lowest level since 9 November 2016. The index fell 9.21 points, or 0.03% at the day's high of 26,809.61 in early trade. The Nifty skidded 170.70 points, or 2.05% at the day's low of 8,125.60 in morning trade, its lowest level since 9 November 2016. The index fell 7.75 points, or 0.09% at the day's high of 8,288.55 in early trade.

The broad market depicted weakness. There were more than seven losers against every gainer on BSE. 1,944 shares fell and 268 shares rose. A total of 74 shares were unchanged. The BSE Mid-Cap index was currently down 4.03%. The BSE Small-Cap index was currently down 4.92%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

In overseas markets, most Asian stocks gained. US stocks closed little changed yesterday, 14 November 2016, after rising dramatically the week before and a decline in the technology sector offset a steep rise in financial stocks as investors bet on higher interest rates. The Dow Jones Industrial Average settled at another record closing high.