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10,293.22 from previous
close 10,678.22, a fall 3.61 per cent. In the last three
trading sessions, Sensex has lost 637 points or 5.83 per
cent. The NSE Nifty fell by 115.80 points or 3.71 per cent
to 3,007.55 points after dipping to 2,999.35 points during
the intra-day trading.
Amid
concerns over the situation in the Middle East, which has
the potential to impact the global energy scenario, crude
price hit a record high of $78.20. This adversely affected
the equity prices across the world. In Asian markets, Nikkei
ended down by 252.71 points, Hang Seng by 70.89 points,
Taiwan index by 170.23 points, Singapore ST by 43.35 points
and Kospi by 29.89 points.
The rising crude prices direct ly affected the Indian
currency, which lost 39 paisa on a single trading session.
Opening on weak note, it closed at Rs 46.76 per US dollar as
compared to the previous close of Rs 46.37/38 per US dollar
a loss of USD.
At the same time, gold witnessed a sharp gain. Following the
trend in the crude oil price, gold price increased by 1.7
per cent to $675.54, the highest since May 19. Institutional
investors have taken heavy exposures in gold to hedge the
risk. “In such a scenario, gold is always considered to be
the safest asset class,” said an analyst with Morgan
Stanley. Gold, which touched a 26-year high of $730.40 an
ounce in May, has risen 5.3 per cent since the conflict
between Israel and Hezbollah began on July 12. Amid tension
over Iran nuclear program and North Korea missile tests,
gold has jumped 9.6 per cent this month.
“The current trend is pure reflection of global scenario,”
said Asit Kotecha, MD of Ask Raymond James. The market
sentiments were influenced by global developments and not by
Indian fundamentals, he added. “Depending on the ongoing
tension in the Middle East, oil price is expected to
continue at high level. This will affect the inflation,
which will, in turn, result into higher interest rate. And
this will finally hit the corporate earnings,” he argued.
The increase in Japanese interest rate by 0.25% is likely to
affect marginally the fund flow from Japanese investors.
385 Rising crude prices directly affected the Indian
currency, which lost 39 paisa on a single trading session
Nikkei ended down by 252.71 points, Hang Seng by 70.89
points, Taiwan index by 170.23 points, Singapore ST by 43.35
points and Kospi by 29.89 points. Due to hedging, gold price
increased by 1.7% to $675.54, the highest since May 19. |
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