The rupee traded lower by 67 paise at 72.52 against a dollar on Monday. The government’s efforts to save the falling value of Indian currency seems to have little impact on the market. After witnessing a historical low of 72.69 against a dollar, rupee’s value recovered owing to buzz about economic review meeting.
Following the same trend as the rupee, BSE Sensex too opened 306 points lower to 37,784 whereas Nifty index broke down 97 points to 11,417.
The market performed poorly again after showing signs of recovery from the past two days. The BSE Sensex sank 505.13 points or 1.33% closing 37,585.51 while the Nifty fell below 11,400.
Key Factors behind low performance:
- Concerns about global trade wars
- Volatile currency
- Inadequate govt. measures
The government on Saturday announced a set of measures to defend Indian currency and to control widening current account deficit by limiting non-essential imports, withholding tax on Masala bonds and introducing relaxation for portfolio investors.
As per a report by HDFC bank, the measures introduced by the government are likely to impose more short-term debts rather than driving inflow of funds.