Sensex crashes over 1,000 points

BSE Sensex today crashed over 1,030 points to slip below the key 34,000-mark in early trade, tracking a global sell-off as the rupee hit yet another record low of 74.45 against the US dollar. The rupee weakened 24 paise on strong demand for the American currency from importers amid unabated foreign fund outflows and sharp losses in the domestic equity market.

At the Interbank Foreign Exchange (forex) market, the domestic currency opened weak at 74.37 and slipped further to quote at an all-time low of 74.45, depreciating 24 paise against the US dollar in the early trade. Forex dealers said besides strong demand for the American currency from importers, concerns of fears of rising fiscal deficit and capital outflows weighed on the domestic currency.

On Wednesday, the rupee snapped its six-session losing streak to end 18 paise higher at 74.21 against the US dollar after the American currency weakened overseas. Foreign institutional investors (FIIs) sold shares net worth a net of Rs 1,096 crore Wednesday, provisional data showed. Investors remained concerned over sustained foreign capital outflows.

At the National Stock Exchange (NSE), the broader 50-scrip Nifty, which had closed at 10,460.10 points on Wednesday, was quoting at 10,155.65 points, down by 304.45 points or 2.91 per cent.

Attractive valuations, along with a stable rupee and expectations of a healthy second quarter earning results, had pushed the key domestic equity indices higher on Wednesday. Healthy buying in banking, capital goods and automobile stocks, coupled with the hopes of revival of the non-banking financial companies (NBFCs) enhanced investors’ risk-taking appetite.

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