Argentina debt fears spook global, India markets

Our Bureau Mumbai | Updated on August 01, 2014 Published on August 01, 2014


Rupee ends at 61.8, a four-month low

Negative global cues, especially fears of a debt default by Argentina, saw global stock markets go into the red and Indian bourses follow suit.

Equity markets here lost over ₹1.32 lakh crore of market capitalisation in the last two trading sessions.

The Nifty closed at 7,602.6, down 1.54 per cent (119 points) while the Sensex closed at 25,480.84, down 1.6 per cent (414 points). The rupee slumped by 63 paise to end at an over-four-month low of 61.18 against the dollar, logging its worst weekly loss since January 24.

Dipen Shah, Head, Private Client Group Research, Kotak Securities, said: “Weak global markets and continuing geo-political tensions rode over the positive core-sector growth data released yesterday. For the week, benchmark indices lost about 2.5 per cent and have ended at a near two-week low. Lower inflation in the European Union, expectations of an earlier-than-expected rise in US interest rates, (worries about a) default by Argentina and some lower-than-expected quarterly results in India soured sentiments”

Foreign institutional investors offloaded equities worth ₹1,073 crore, while domestic investors were net buyers of equities worth ₹1,075 crore.

Retail investors sold net equities worth ₹3 crore. All the broader and sectoral indices closed in the red.

Volatility was high and the volatility index India Vix closed 10.11 per cent higher, at 15.22.

Published on August 01, 2014
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