Sensex slides 650 points on weak global cues, exit poll results; Nifty at 10,500
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At 9:30 am Sensex was at 35,112, down by 561.07 points. Nifty at 10,520, down by 185 points.
The benchmark BSE Sensex cracked over 650 points Monday as investors turned jittery over exit poll results ahead of the outcome of assembly election results of five states, weakening rupee and crude oil price rise amid an escalation in US-China trade tensions.
The results will be announced when ballots are counted on Tuesday.
The Sensex plunged 657 points to hit the day’s low at 35,016.08, while the Nifty is trading near the 10,500-level.
The exit polls Friday predicted a tight finish between the BJP and the Congress in Madhya Pradesh and Chhattisgarh and a win for the opposition party in Rajasthan.
Global crude oil prices rose after Opec members and 10 other oil producing nations agreed Friday to cut output by 1.2 million barrels a day in a bid to boost prices.
Meanwhile, the rupee fell sharply today to 71.23 a dollar as compared to Friday’s close of 70.82.
Equity markets in Asia plummeted in early morning trade following weak trends in the US equity futures market. Investors are said to be worried about US-China trade tensions coming at the forefront again. The arrest of Huawei CFO as well as fresh import tariff rhetoric by the White House is dragging the markets in Asia.
Reuters reported that White House trade adviser Peter Navarro’s has hinted at raising tariff rates on Chinese imports if the two countries could not come to an agreement during the 90-day negotiating period.