USA’s Iraq air raids hit Sensex by 260 pts
9 Aug 2014 6:23 AM IST
Adding to the worry of global investors, Russian President Vladimir Putin went on retaliatory measures by banning food imports from Western countries. Russia faces sanctions imposed by the US and European countries.
Brokers said the sentiment was also hit by the rupee slumping to five-month low of 61.74 (intra-day) against the US dollar with global crude prices shooting up.
Jayant Manglik, President, Retail Distribution, Religare Securities said: ‘Investors were also cautious after Reserve Bank Governor Raghuram Rajan warned that global markets are at the risk of a crash due to the lingering competitive loose monetary policies being followed by the developed economies.’
After opening lower by over 180 points, the 30-share Sensex at one point was down over 350 points before ending the day at almost four week low of 25,329.14 — a level not seen since 15 July — registering a steep loss of 259.87 points or 1.02 per cent.
In straight three days, the key index has plunged by 578.87 points or 2.23 per cent. American President Barack Obama on Thursday said that he has authorised targeted air strikes against militants in Iraq, key crude producer. The development, it is widely felt, will further fuel world oil prices. India imports 80 per cent of its crude oil requirements and it will be a big jolt to the country's economy, ultimately affecting the current account deficit.
‘Global markets closed in the negative for the week on the back of geopolitical tensions. The
US authorising targeted air strikes on Iraq is the latest trigger. There is growing unease over the Ukraine crisis. Indian markets were not insulated from the sell-off in global markets as it signed off
the week in negative zone....’ said Sanjeev Zarbade, Vice President, Private Client Group Research, Kotak Securities.
Brokers said the sentiment was also hit by the rupee slumping to five-month low of 61.74 (intra-day) against the US dollar with global crude prices shooting up.
Jayant Manglik, President, Retail Distribution, Religare Securities said: ‘Investors were also cautious after Reserve Bank Governor Raghuram Rajan warned that global markets are at the risk of a crash due to the lingering competitive loose monetary policies being followed by the developed economies.’
After opening lower by over 180 points, the 30-share Sensex at one point was down over 350 points before ending the day at almost four week low of 25,329.14 — a level not seen since 15 July — registering a steep loss of 259.87 points or 1.02 per cent.
In straight three days, the key index has plunged by 578.87 points or 2.23 per cent. American President Barack Obama on Thursday said that he has authorised targeted air strikes against militants in Iraq, key crude producer. The development, it is widely felt, will further fuel world oil prices. India imports 80 per cent of its crude oil requirements and it will be a big jolt to the country's economy, ultimately affecting the current account deficit.
‘Global markets closed in the negative for the week on the back of geopolitical tensions. The
US authorising targeted air strikes on Iraq is the latest trigger. There is growing unease over the Ukraine crisis. Indian markets were not insulated from the sell-off in global markets as it signed off
the week in negative zone....’ said Sanjeev Zarbade, Vice President, Private Client Group Research, Kotak Securities.
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