Sensex plunges over 1,000 points amid weakening rupee, rising crude prices

The domestic stock market plunged sharply on Monday amid a weakening rupee, rising crude oil prices and a slowdown in the United States equity market.

The benchmark Sensex fell 1.36%, or 1,048.9 points, and closed at 76,330.01.

The broader Nifty 50 declined nearly 1.47%, or 345.55 points, and closed at 23,085.95.

The total market capitalisation of all listed companies on the Bombay Stock Exchange fell to nearly Rs 417 lakh from Rs 430 lakh, according to Mint.

The fall has been attributed to a mix of factors. Earlier in the day, the Indian rupee fell to an all-time low of 86.4 per US dollar. This came after robust US economic data reduced expectations of further Federal Reserve rate cuts.

“Market will continue to be under pressure from the many strong headwinds,” VK Vijayakumar of Geojit Financial Services was quoted as saying by The Economic Times.

Vijayakumar said that the United States reported higher-than-expected job creation in December, which was good news for its economy, but was bad news for markets which were hoping for rate cuts.

Additionally, oil prices have climbed above $81 per barrel after US President Joe Biden imposed new sanctions on Russia, further exacerbating India’s trade deficit and intensifying dollar demand. This has triggered inflationary concerns among investors.

Foreign investors are also key drivers of market volatility,…

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