The benchmarks on Friday slid the most in over three weeks with the Sensex tanking 414 points and Nifty slumping 119 points on across-the-board losses in the second half of the session as investors tracked weak global cues and continuing geo-political tensions.
Asian indices fell on weak eurozone data and as news of Argentina's debt default and talks of rise in US jobless claims made investors jittery, say brokers. The US non-farm payroll data later today will give more cues. The US Fed's move to trim stimulus had triggered capital outflow concerns.
Major European indices were also trading 1.5-2 per cent lower in afternoon trade, extending the global sell-off.
The BSE 30-share Sensex resumed lower and remained in negative ground throughout the day before ending at 25,480.84, revealing a fall of 414.13 points or 1.60 per cent. This is its biggest drop since July 8 when it tanked 518 points.
Selling was seen across-the-board as all 12 BSE sectoral indices closed in the red. They registered losses between 0.9 per cent and 3.27 per cent. Consumer Durable, Oil&Gas, Capital Goods, Power and IT were laggards. Tepid earnings in some firms also hit the sentiment.
"Markets sold off in the second half. Weak global markets and continuing geo-political tensions rode over the positive core sector growth data released in India yesterday," said Dipen Shah, Head- PCG Research, Kotak Securities.
Rupee crashes 63 paise vs $ to end at over 4-month low Weakness in global stock markets and a strong US currency pulled down the rupee by a whopping 63 paise to end at over four-month low of 61.18, logging its worst weekly loss since January 24.
Importers and some banks bought dollars and short-sellers covered their positions on hopes of further hike in the dollar value after US Fed recently trimmed its monthly economic stimulus by $ 10 billion.
The dollar too gained against most peers as the American economy grows stronger. A steep fall in local indices after a global sell-off also weighed down on the rupee. The benchmark Sensex today slumped over 414 points, or 1.60 per cent, to a 3-week low.
Foreign Institutional Investors had pulled out Rs 1,654.86 crore . This also hit the rupee sentiment.
At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced weak at 60.75 a dollar from last close of 60.55 and immediately touched a high of 60.69.
However, it later tumbled to a low of 61.19 before ending at 61.18, showing a fall of 63 paise or 1.04 per cent. This is its weakest closing since 61.34 on March 20. In absolute term, this 63-paise fall is the biggest since January 24 (73 paise).
On Thursday, it has plunged by 49 paise or 0.82 per cent. The strength in US dollar index and weakness in Asian currencies and global stock markets were seen taking a toll on the currency. The failure to reach an agreement on the WTO deal further hit investor sentiments, a forex broker said. On the drop in markets, RBI Governor Raghuram Rajan in Delhi said: "We are not immune to what is happening world markets."