Sensex yo-yos as rupee triggers chaos
The S&P BSE Sensex today plunged over 330 points intra-day between a high of 18,307 and a low of 17,971 in tandem with the rupee breaching 64-to-a-dollar mark, before recovering to close down 62 points, or 0.3%, at 18,246.business Updated: Aug 20, 2013 22:35 IST
The S&P BSE Sensex on Tuesday plunged over 330 points intra-day between a high of 18,307 and a low of 17,971 in tandem with the rupee breaching 64-to-a-dollar mark, before recovering to close down 62 points, or 0.3%, at 18,246.
In the past three days, the Sensex has lost over 1,100 points as a depreciating rupee jolted capital markets.
The broader 50-share NSE Nifty fell 13 points, 0.3%, to end at a nearly 12-month low of 5,402.
Factors including concerns over economic recovery, high inflation and a widening current account deficit (CAD) put pressure on the market, said analysts. Weakness in global markets and capital outflows also hit sentiments, they added.
"News from the Fed about the possible stimulus withdrawal was one of the prime reasons for the sharp fall," said Mayuresh Joshi, vice-president, institutions, Angel Broking.
"There was some technical support at lower levels that caused the markets to bounce back from early lows," said Vikas Inder Jain, assistant vice-president, retail research, Religare Securities.
As many as 16 scrips out of the 30-share Sensex pack finished lower while 14 ended higher. Fall in Tata Motors (down 4.7%), TCS (down 2.4%), HDFC (down 1.3%) contributed to index's loss while rise in ICICI Bank (up 1.8%), Sterlite (up 9.9%) and HUL (up 0.4%) capped the intra-day fall to a major extent.
On the broader market, Titan Industries lost 6.1%. Sesa Goa (up 16%) and Hindustan Zinc were the major gainers. "The rupee's slide needs to stabilise and that is a major cue that would drive the markets," said Joshi.