The benchmark indices have started the week on a weak note with losses of over 1%.
Petrol and diesel prices continue to scale new highs as the government tries to shore up revenues.
Join us as we follow the top business news through the day.
Dollar stymied as mood swings between recovery hopes and virus fears
The fluctuations in the currency market could point to indecisiveness among global investors.
Reuters reports: “The dollar struggled to make headway on Monday, and riskier currencies inched ahead, as investor sentiment swung between hopes for a global economic recovery and fears that a fresh wave of coronavirus cases could undermine the revival.
Against a basket of currencies the greenback retreated from a one-week high hit on Friday and dipped 0.2% to 97.303. The trade-exposed Australian and New Zealand dollars rose about 0.2% to near the middle of recent ranges.
California ordered some bars to close on Sunday, following similar moves in Texas and Florida, as cases nationwide soar to record levels. Washington state and the city of San Francisco have paused re-opening plans.
Yet elsewhere – from New York to Europe and Asia – re-openings continue apace and data illustrates a swift rebound.
“The debate is still very live,” said Westpac FX analyst Sean Callow. “How seriously are you going to bet that retreats in reopening in selected U.S. states are enough to actually puncture the rally?”
For now the dollar has dithered rather than deflated.
The Aussie and kiwi are headed for monthly gains around 3% but made most of that ground in the early days of June and have tracked sideways since then.
The Aussie, which has gained nearly 25% from a more than 17-year low hit in March, was last up 0.2% at $0.6877. The kiwi rose by the same margin to $0.6431.
Simultaneous safe-haven gains also point to heightened caution, even as the thirst for dollars has eased off as the U.S. Federal Reserve has flooded markets with liquidity.”
Sensex tumbles over 300 points in early trade; Nifty below 10,300
A moderately bearish start to the day for domestic equities.
PTI reports: “Equity benchmark Sensex tumbled over 300 points in early trade on Monday dragged by losses in index-heavyweights HDFC twins, ICICI Bank and Infosys amid negative cues from global markets.
The 30-share index was trading 323.91 points, or 0.92 per cent, lower at 34,847.36, while the NSE Nifty fell 83.65 points, or 0.81 per cent, to 10,299.35.
Bajaj Finance was the top loser in the Sensex pack, dropping around 4 per cent, followed by Axis Bank, IndusInd Bank, ICICI Bank, SBI, HDFC duo and Infosys.
On the other hand, ITC, Sun Pharma, Nestle India and PowerGrid were among the gainers.
In the previous session, the BSE barometer closed 329.17 points, or 0.94 per cent, higher at 35,171.27, and the broader Nifty surged 94.10 points, or 0.90 per cent, to finish at 10,383.
Foreign institutional investors were net sellers on Friday, offloading equities worth Rs 753.18 crore, provisional exchange data showed.”
Diesel price hits new high
Diesel price on Monday scaled a new high after prices were hiked for the 22nd time in just over three weeks, taking the cumulative increase to ₹11.14 per litre.
Petrol price was increased by 5 paise per litre and diesel 13 paise a litre across the country, according to a price notification of state oil marketing companies.
In Delhi, a litre of petrol now comes for ₹80.43 per litre as compared to ₹80.38 earlier. Diesel rates have been increased to ₹80.53 per litre from ₹ 80.40.
Rates vary from state to state depending on the incidence of local sales tax or VAT.