Sensex dives 350 points, rupee posts biggest fall in a month

MUMBAI: Fresh worries about global economic growth and the end of US monetary stimulus (popularly QE3) pulled down most of the major markets around the world and left Dalal Street investors jittery on Thursday. The sensex lost 350 points, its second consecutive session of slide, and closed at 25,999, its first close below the 26K mark in the last two months.The day’s loss also wiped off investors’ wealth worth about Rs 1.65 lakh crore with BSE’s market capitalization now at Rs 91.3 lakh crore.
The day also saw the rupee weaken 43 paise at 61.84 to a dollar, its biggest fall in a month, on fears that the slide in the market and a widening trade deficit could prompt foreign investors to take money out of India.
In the stock market, after a marginally positive start, mainly on the back of exit poll results for state elections showing majority for the pro-business BJP, the sensex remained mostly in the negative territory. However, after the European markets opened weak, there was fresh selling in the domestic market that took the index to its intra-day low at 25,934. It closed a tad above that level, but still down 1.3% on the day. On the NSE, the nifty closed 116 points lower at 7,748.
With the market sentiment globally turning weak and FIIs taking money off the table, brokers are turning cautious. “Negative global cues and weak macroeconomic data pushed the benchmark indices deep in red on Thursday,” said Jayant Manglik, president, retail distribution, Religare Securities. “We believe this selling pressure will continue and the nifty would test its immediate support around 7,650 mark shortly. It may take pause around that zone prior to next directional move,” he said.
Data on Thursday showed that FIIs were net sellers at Rs 1,128 crore.