Sensex fall continues, rupee recovers

The US financial crisis continued to rock the global markets for the third consecutive day. Indian stocks fell 1.9 per cent on Wednesday, taking losses to more than a tenth over seven consecutive sessions. The 30-share Sensex ended down 256 points at 13,380.56, its lowest close in two months. With this, the BSE benchmark has lost 1,682 points or 11.25 per cent in seven consecutive trading sessions from a recent high of 14,944.97 on September 8, 2008.

However, the rupee rose more than one per cent in volatile trade on Wednesday, boosted by the RBI8217;s move to keep selling dollars and lift deposit rates for non-resident Indians, but stock market losses remained a weight. The rupee ended at 46.33/35 per dollar, off a high of 46.25, and 1.2 per cent stronger than 46.89/90 at the close on Tuesday. The Sensex fell as much as 2.9 percent during trade and is down nearly 35 percent in 2008. The 50-share NSE Nifty index fell 1.6 percent to 4,008.25. Ranbaxy Laboratories fell 6.6 per cent to Rs 379.10 after the US Food and Drug Administration said it would block more than 30 generic drugs following ongoing procedural violations in some of its plants in India.

Dealers said the rupee may rise towards 46 per dollar in the near term, helped by the RBI8217;s supportive stance. The dollar8217;s strength versus other currencies overseas was also weighing on the rupee.