MUMBAI: Stock markets moved sharply lower on Thursday as it plunged over 400 points in opening trade, this turned into 500 points in early trade and by noon it became 800 points. The rupee hit another record low, amid weak global cues, boiling crude prices and fears of a widening current account deficit. On Wednesday it had plunged by 43 paise to breach the historic low of 73 level.
“The fresh record low of rupee, hardening bond yields, weak Asian Market cues and the ever present risk of rising crude led to the fall today”, Viral Berawala, CIO at Essel Mutual Fund, told. One of the main reasons behind sen market hit 3 months low sensex is crude oil prices are wreaking havoc too. Oil breached the $85 per barrel mark, leading to huge outflows of cash. Rising crude oil prices have fuelled worries over capital outflows and widening Indian current account deficit.
Oil prices have reached four-year peaks. Brent – the international benchmark for crude oil – eased 18 cents to $86.11 a barrel on Thursday as India meets more than 80 per cent of its oil demand through imports.