Amid weak cues from global markets, the domestic stock market started with a fall on Monday. In early trade, at 9:18 AM, Sensex fell by about 384.52 points to reach 72,935.03. Nifty 50 also dropped by 116.20 points to trade at 22,596.90.
In fact, after Donald Trump’s latest warning regarding Iran, pressure was seen in global markets, the effect of which was clearly visible on the Indian stock market.
Weakness in Midcap and Smallcap Indices
Today, slight weakness was observed in midcap and smallcap indices in the stock market. Nifty Midcap and Nifty Smallcap indices were seen trading with a fall of about 0.5%. Talking about sectoral indices, Nifty PSU Bank Index saw a rise of about 2%, while Nifty Metal Index climbed about 1%.
In early trade on Monday, the Indian Rupee showed strength and rose by 33 paise against the US dollar to reach 92.85. This surge is attributed to the Reserve Bank of India’s (RBI) new rule, which has set the limit for banks’ net open positions up to $100 million to curb speculation.
However, according to forex market experts, the rupee is still under pressure. The reasons for this are continuous selling by foreign investors, strengthening dollar, global geopolitical tensions, and rising crude oil prices. In the interbank foreign exchange market, the rupee opened at 93.13 and later strengthened to 92.85, which is 33 paise higher than its previous closing level.
