US Fed move triggers Indian mkt mayhem
The National Stock Exchange of India’s (NSE) Nifty index, too, dipped below the 5,700 level by losing 166.35 points (2.86 per cent) to close at 5,655.90. The SX40, the flagship index of the MCX-SX, closed 308.22 points (2.70 per cent) down at 11,118.85.
The rupee too was hit hard by hefty dollar outflows on the Fed’s plan to exit its stimulus programme and closed at an all-time low of 59.57 against the greenback on Friday, retreating from near 60-levels on suspected Reserve Bank of India (RBI) intervention and pep talk from the government.
At the Interbank Foreign Exchange (Forex) market, the Indian currency commenced sharply lower at 59.50 per dollar from Wednesday’s close of 58.70 and dipped further to log its all-time low of 59.93 as market participants panicked after Bernanke’s announcement.
The rupee saw a marginal recovery to end at 59.57, still down 87 paise (1.48 per cent) over Wednesday’s close, after Chief Economic Advisor to the Finance Ministry Raghuram Rajan said that the government is ready to take steps to curb the currency’s volatility and is ‘not short of instruments’ to tackle the slide in the rupee.
Standard gold of 99.5 per cent purity slumped by Rs 765 to finish at Rs 27,160 per 10 gm on Thursday from Wednesday’s closing level of Rs 27,925. Pure gold of 99.9 per cent purity plummeted by Rs 775 to end at Rs 27,295 per 10 gm from Rs 28,070.
Silver ready (.999 fineness) tanked by Rs 1,935 to conclude at Rs 43,115 per kg as against Rs 45,050 on Wednesday.