MUMBAI (TIP): The rupee dropped to a historic low of 62.00 per dollar in late morning trade on August 16 on good demand for the US currency from banks and importers in view of sharp fall in equity market. The rupee resumed slightly higher at 61.35 per dollar as against the last closing level of 61.43 at the Interbank Foreign Exchange (Forex) Market.
But, it fell sharply to an all-time low of 62.00 on good dollar demand from banks and importers in view of fall in equity market, before quoting at 61.90 per dollar at 1045 hours. It moved in a range of 61.32 and 62.00 per dollar during the morning deals. In global market, the US dollar seesawed against major rivals in the early trade, in line for further volatility as the week wraps up with more data to fuel Federal Reserve consideration of tapering monetary stimulus.
Sensex snaps 4-session winning spree, tumbles 475 points The S&P BSE benchmark Sensex snapped 4-session rising spree, tumbling 475 points in late morning trade due to all-round selling from operators in view of fall in global markets amid depreciation of rupee value against the dollar. Shares of consumer durable, banking, realty, capital goods, metal, power and refinery sectors declined sharply.
The BSE-30 share index, Sensex, resumed lower at 19,297.11 points and dropped further to a low of 18,852.40 before quoting at 18,892.86 at 1115 hours. It showed a sharp fall of 474.73 points, or 2.45 per cent, from its last close. It had gained by 702.71 points or 3.76 per cent in last four sessions. The NSE 50-share barometer Nifty also tumbled by 159.90 points or 2.78 per cent to 5,582.40 at 1050 hours.
Major losers were – BHEL (4.59%), HDFC (4.44%), Maruti Suzuki (4.24%), Tata Power (3.73%), Icici Bank (3.59%), M&M (3.41%), Tata Steel (3.36%) and Larsen (3.19%). The market sentiment was also affected by RBI’s decision on Wednesday to reduce the limit for overseas direct investment (ODI) under automatic route for all fresh ODI transactions from 400 per cent of the net worth of an Indian party to 100 per cent of its net worth.
Asian stocks stumbled on Wednesday after some weak earnings and worries that the Federal Reserve would soon pare its bond purchases slammed Wall Street. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, South Korea and Japan were down by 0.51 to 1.35%.