The stock market ended lower as the Sensex fell 64 points to end at 85,641, Nifty declined 27 points to close trade at 26,175.
During early morning trade, the BSE Sensex crossed 86,000 and started the session on a robust note, rising more than 300 points, while the NSE Nifty50 rang the opening bell around 26,300, jumping 82 points.
However, during the mid-day the stock market pared its gains after scaling record highs.
By 12:30 PM, the Sensex tumbled 600 points from the day’s high to 85,556.
What Is The Reason Behind The Decline?
The Indian rupee weakened to a fresh lifetime low on Monday, even as the latest GDP data painted a strong macroeconomic picture. The currency slipped to 89.76 against the US dollar, breaching its earlier record of 89.49 touched roughly two weeks ago. Since 3 November, the rupee has lost nearly one rupee against the greenback, extending its depreciating trend.
The decline came despite a robust Q2 GDP print, which has tempered expectations of any imminent rate cut by the Reserve Bank of India. The stronger-than-expected growth outcome has reinforced the view that monetary policy may remain steady in the near term, adding another layer of market attention to the currency’s trajectory as trading closed for the day.
