A morning walk down Dalal Street | Major sell-off possible if Nifty fails to hold 10,718
Episode 1597, Aug 23, 2019, 01:30 AM
The rupee crashed to an 8-month low while Nifty50 made a fresh low in August, and is now trading at levels last seen in February
Investors lost more than Rs 2 lakh cr in market capitalisation in just one trading session, for the month of August the number is above Rs 3 lakh cr, according to BSE data.
Both local and global headwinds weighed on the sentiment. Investor sentiment was roiled after the Chief Economic Adviser (CEA) Krishnamurthy Subramanian indirectly ruled out the possibility of a major stimulus package.
On the global front, Yuan which fell to a fresh 11-year low caused panic in the currency market. Weakness in the currency was seen largely on account of the deepening Sino-US trade war.
The Indian rupee on August 22 plunged to an over eight-month low of 71.81, dropping 26 paise against the US dollar as tumbling equities and incessant foreign fund outflows weighed on sentiment.