Sensex, Nifty plunge over 2pc, rupee hits all-time low

Mumbai, June 13 : The BSE Sensex plunged over 1,435 points or more than 2 per cent in early trade on Monday while Nifty slid below 15,800 on weak global cues and fears of interest rate hikes by US Federal Reserve (US Fed).

In his pre-opening market comments, Prashanth Tapse, Vice President (Research), Mehta Equities attributed the fall in benchmark indices to weak global market cues after the European Central Bank said it planned to raise interest rates in July, while the US CPI surged 8.6 per cent year-over-year in May.
“The uptick in inflation reading would further bolster expectations that the Federal Reserve will continue to aggressively hike rates in the second half of this year, even with signs of economic slowdown. On the domestic front, persistent FII selling continues to dampen sentiment. FIIs have been net sellers for the eighth consecutive month, net offloading more than Rs 3.45 lakh crore since October 2021,” said Tapse.
The Indian rupee also hit all-time low and fell below 78 against the dollar on Monday. The rupee opened at 78.14 against the dollar and slid further to 78.28 against the greenback. The rupee has been under pressure amid elevated geo-political crisis and spiralling global crude prices.

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