Sensex, Nifty Plunge A Day After Bihar Poll Verdict


MUMBAI: Markets plunged sharply in opening trade, and the rupee slumped on Monday, a day after the Narendra Modi-led National Democratic Alliance suffered a poll debacle in Bihar.

PTI reported that the 30-scrip Sensex tumbled 608.34 points, falling below the 26,000-level to 25,656.90. The broad-based Nifty slipped below 7,800.

Reports said Modi’s heavy defeat in Bihar’s state elections raised concerns the government would struggle to pass policy reforms, while stronger-than-expected U.S. jobs data also weighed in.

The rupee slipped below the 66-level by tumbling 74 paise, or 1.11 pct, at 66.50 against the U.S. dollar in early trade today on strong demand for the American currency from banks and importers.

Analysts had earlier warned that the week would see a “knee-jerk” reaction followed by a phase of phase of recovery and consolidation over the Diwali-shortened week.

The victory of Nitish Kumar-led Grand Alliance, comprising the JD(U), RJD and Congress, in Bihar is expected to have a bearing on the economic reform agenda of the BJP-led NDA government at the Centre as it does not have majority in the Rajya Sabha.

Stock markets would remain closed on Wednesday and Thursday for Diwali Laxmi pujan and Diwali Balipratipada, except for a one-hour Muhurat trading on Wednesday evening.

Source: PTI