The Indian rupee depreciated sharply on Monday, closing 86 paise down at 70.45 against the dollar. The decline in the rupee was the result of reduction in the country’s growth rate, Mint reported. India’s Gross Domestic Product growth rate fell from 8.2% in the first quarter of 2018-’19 to 7.1% in the second quarter, as per government data released on Friday.
The currency had strengthened by 27 paise to close at a four-month high of 69.58 against the dollar on Friday, before the GDP figures were released.
Benchmark indices closed slightly higher on Monday, erasing the gains they had made in the morning session following positive cues from global markets, after the United States and China agreed to halt new trade tariffs for 90 days for talks.
The US agreed not to raise tariffs on $200 billion (Rs 14 lakh crore) worth of Chinese goods from 10% to 25% on January 1, while China agreed to buy a “very substantial” amount of agricultural, industrial and energy products, BBC reported.
The BSE Sensex, which opened 200 points higher than Friday’s close, finished just 46.70 points up at 36,241. The National Stock Exchange Nifty ended seven points higher at 10,883.75.
Yes Bank, Hindustan Unilever, Vedanta, National Thermal Power Corporation and Bharti Airtel were the biggest gainers on the Sensex. The stocks which performed best on the Nifty were Indiabulls Housing Finance, Yes Bank, Hindustan Unilever, GAIL and Vedanta.
Shares of Sun Pharmaceuticals crashed by over 7.5% on both indices after reports that markets regulator Securities and Exchange Board of India was likely to reopen an insider trading case against the company, PTI reported. A whistleblower has reportedly approached the market regulator with a document alleging financial irregularities by the company, its promoter Dilip Shanghvi and others.
Mahindra & Mahindra, ITC, Hero Motocorp and Reliance Industries were the other biggest losers on the Sensex. On the Nifty, these were Mahindra & Mahindra, UPL, Hindustan Petroleum Corporation Ltd and Zee Entertainment.