Sensex plunges 317 pts in biggest fall in nine months, hits year’s low
22 Feb 2013 7:31 AM IST
The BSE benchmark Sensex on Thursday suffered the biggest single day fall in nearly nine months by falling over 317 points to year's lowest level on all-round selling amid weak global cues.
The Sensex tumbled 317.39 points, or 1.62 per cent, to 19,325.36, recording its biggest single day loss since May last year. The index had gained 174.60 in last three sessions.
Similarly, the broad-based National Stock Exchange index Nifty fell below 5,900 level by losing 90.80 points, or 1.53 per cent to 5,852.25, after touching the day's low of 5,844.40.
Brokers said heavy capital outflow before the budget on fears of imposition of taxes to narrow budget deficit and a weak global trend on renewed concerns that US Federal Reserve's policy-tightening moves to reduce liquidity influenced the market sentiment.
"The markets turned distinctively weak today and closed at the lowest levels in 2013. We believe this was largely due to the weakness in global markets," said Dipen Shah, Head of PCG (Private Client Group) Research, Kotak Securities.
The minutes of the last Fed meeting have raised concerns that, the Fed may withdraw the monetary stimulus if there is some improvement in the economic data. This has raised concerns about fund flows across asset classes, including emerging markets, he added.
The US Dow Jones index closed 0.8 per cent down last night while losses at Nasdaq were sharper at 1.55 per cent as foreign investors seen profit booking and taking out money from equities and commodities.
The current fall in domestic markets was led by stocks of metal, banks and realty sectors with 29 stocks of the 30-BSE index kitty ending with losses. GAIL India was the lone gainer by adding 0.09 per cent to Rs 338.10.
The Sensex heavy Reliance Industries dropped 1.78 per cent to Rs 859.20, after a 3.1 per cent surge on Wednesday. The second-heavy Infosys lost 0.48 per cent to Rs 2,806.75.
Among others, ICICI Bank, Hindalco, Jindal Steel, Larsen and Toubro, Bharti Airtel, BHEL, HDFC Bank, Mahindra and Mahindra, Maruti Suzuki, Tata Motors, State Bank of India and Sterlite Industries fell sharply.
Rs DIPS BY 40 PAISE TO 54.47 AGAINST $
The Indian rupee ended lower by 40 paise to 54.47 against the American currency on fresh dollar demand from banks and importers on the back of higher dollar in the overseas market amidst sharp fall in equity.
The rupee resumed lower at 54.37 per dollar as against the last closing level of 54.07 per dollar a the Interbank Foreign Exchange (Forex) Market and dropped further to 54.60 per dollar before ending at 54.47 per dollar, showing a loss of 40 paise or 0.74 per cent.
It hovered in a range of 54.30 per dollar and 54.60 per dollar during the day.
Fresh dollar demand from banks and importers during the day on the back of higher dollar in the overseas market affected the rupee value, a forex dealer said.In Sydney, the U.S. dollar held firm, having enjoyed its biggest one-day gain in seven months against a currency basket as commodities and U.S. equities slid.
The Sensex tumbled 317.39 points, or 1.62 per cent, to 19,325.36, recording its biggest single day loss since May last year. The index had gained 174.60 in last three sessions.
Similarly, the broad-based National Stock Exchange index Nifty fell below 5,900 level by losing 90.80 points, or 1.53 per cent to 5,852.25, after touching the day's low of 5,844.40.
Brokers said heavy capital outflow before the budget on fears of imposition of taxes to narrow budget deficit and a weak global trend on renewed concerns that US Federal Reserve's policy-tightening moves to reduce liquidity influenced the market sentiment.
"The markets turned distinctively weak today and closed at the lowest levels in 2013. We believe this was largely due to the weakness in global markets," said Dipen Shah, Head of PCG (Private Client Group) Research, Kotak Securities.
The minutes of the last Fed meeting have raised concerns that, the Fed may withdraw the monetary stimulus if there is some improvement in the economic data. This has raised concerns about fund flows across asset classes, including emerging markets, he added.
The US Dow Jones index closed 0.8 per cent down last night while losses at Nasdaq were sharper at 1.55 per cent as foreign investors seen profit booking and taking out money from equities and commodities.
The current fall in domestic markets was led by stocks of metal, banks and realty sectors with 29 stocks of the 30-BSE index kitty ending with losses. GAIL India was the lone gainer by adding 0.09 per cent to Rs 338.10.
The Sensex heavy Reliance Industries dropped 1.78 per cent to Rs 859.20, after a 3.1 per cent surge on Wednesday. The second-heavy Infosys lost 0.48 per cent to Rs 2,806.75.
Among others, ICICI Bank, Hindalco, Jindal Steel, Larsen and Toubro, Bharti Airtel, BHEL, HDFC Bank, Mahindra and Mahindra, Maruti Suzuki, Tata Motors, State Bank of India and Sterlite Industries fell sharply.
Rs DIPS BY 40 PAISE TO 54.47 AGAINST $
The Indian rupee ended lower by 40 paise to 54.47 against the American currency on fresh dollar demand from banks and importers on the back of higher dollar in the overseas market amidst sharp fall in equity.
The rupee resumed lower at 54.37 per dollar as against the last closing level of 54.07 per dollar a the Interbank Foreign Exchange (Forex) Market and dropped further to 54.60 per dollar before ending at 54.47 per dollar, showing a loss of 40 paise or 0.74 per cent.
It hovered in a range of 54.30 per dollar and 54.60 per dollar during the day.
Fresh dollar demand from banks and importers during the day on the back of higher dollar in the overseas market affected the rupee value, a forex dealer said.In Sydney, the U.S. dollar held firm, having enjoyed its biggest one-day gain in seven months against a currency basket as commodities and U.S. equities slid.
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