Rupee hits all-time low against US dollar, subdues Indian stock indices
After two consecutive days of gains, Indian stock indices declined marginally in early trade on Tuesday, weighed down by a consistent depreciation of the rupee.
On Tuesday, the rupee hit yet another historical low and touched the key psychological level of 80 against the US dollar, ANI reports.
At 9.40 am, Sensex was at 54,389.79 points, down 131.36 points or 0.24 per cent, whereas Nifty was at 16,252.95 points, down 25.55 points or 0.16 per cent.
Among the Nifty 50 stocks, 29 were in the green and the rest in the red, National Stock Exchange data showed.
Consistent depreciation in the value of the rupee has been weighing on the domestic stocks. A depreciation in the rupee is typically negative for foreign investors.
“We expect a rupee to remain volatile this week and could hold its key support level of 80.5500 on a closing basis,” said brokerage Prithvi Finmart.
Further, reports suggest that phone and gadget maker Apple planning to slow hiring and spending is likely to have subdued stocks in India and other Asian markets.
“Asian shares are subdued Tuesday after Apple Inc.’s plans to slow hiring highlighted concerns that aggressive monetary tightening to tackle inflation threatens an economic downturn,” said Deepak Jasani, Head of Retail Research, HDFC Securities.