Indian share markets ended over 2% lower today following a sharp selloff in the global markets. At the closing bell, BSE Sensex ended down by 760 points, while, NSE Nifty ended down by 225 points.
Except oil & gas stocks, all sectoral indices ended the day in red with realty sector, IT sector and metal sector plunging over 3%.
Globally, Asian stock markets finished sharply lower today with shares in China leading the region. The Shanghai Composite ended down 5.2% while Japan's Nikkei 225 was off 3.9% and Hong Kong's Hang Seng was lower by 3.6%. European markets are sharply lower today with shares in London off the most. The FTSE 100 is down 1.8% while France's CAC 40 is off 1.4% and Germany's DAX is lower by 1.3%.
The rupee was trading at Rs 74.14 against the in the afternoon session.
The Indian rupee today rebounded from its fresh all-time low after crude oil prices and the US dollar fell.
In the afternoon session, the rupee was trading at 74.16 a dollar, up 0.08% from its Wednesday's close of 74.22. In the morning trade, the rupee opened at 74.31 and touched a fresh low of 74.46 a dollar, tracking sell-off in the global markets.
Strong demand for the American currency from importers amid unabated foreign fund outflows and sharp losses in the Indian share markets hurt the sentiment. Concerns of fears of rising fiscal deficit also weighed on the domestic currency.
Meanwhile, the 10-year gilt yield stood at 8.01% from its previous close of 8.031%. Note that, Bond yields and prices move in opposite directions.
Further, oil prices fell to two-week lows today as it extended big losses from the previous session amid a rout in global stock markets, with prices also hit by an industry report showing US crude inventories rose more than expected.
Almost every time, a rise or fall in the stock markets is invariably linked to crude oil prices.
Logically, it seems right too. Rise in crude oil increases input costs for dependent firms. It also means rising inflation. Rising inflation means rising interest rates.
It also puts pressure on the government to cut excise duty, thereby impacting its revenues. We have already seen that happening. After all, there is an election year coming up.
But has it really affected the stock markets? Here's what Girish Shetty thinks:
As per him, focusing on quality stocks rather than crude oil will matter more in the long run.
Moving on to the news from pharma sector. As per an article in a leading financial daily, Aurobindo Pharma has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Azithromycin Oral Suspension 100 mg /5 mL and 200 mg/5 mL.
Azithromycin oral suspension is a generic version of Pfizer Inc's Zithromax oral suspension. The product will be launched in November 2018.
The drug is indicated for the treatment of patients with mild to moderate infections. According to IQVIA, the approved product has an estimated market size of US$71 million for the twelve months ending August 2018.
Reportedly, this is the 125th ANDA (including 11 tentative approvals) to be approved out of Unit III formulation facility in Hyderabad used for manufacturing oral products.
Aurobindo now has a total of 386 ANDA approvals (357 Final approvals including 19 from Aurolife Pharma LLC and 29 tentative approvals) from USFDA.
Aurobindo Pharma share price ended the day down by 3.7%.
To know more about the company, you can access to Aurobindo Pharma's Q1FY19 result analysis and Aurobindo Pharma FY18 annual report analysis on our website.
For information on how to pick stocks that have the potential to deliver big returns, download our special report now!
Read the latest Market Commentary
Equitymaster requests your view! Post a comment on "Sensex Ends 760 Points Lower; IT & Realty Sector Tank Over 3%". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!