Sensex dips 200 pts on falling rupee

Falling rupee added to the woes of the sectors that depend on imports.

The BSE Sensex fell for the third day in a row today,down 200 points to 4-week low of 16,162,as global sell-off in equities continued amid grim prospects of world economic growth on warnings of slow US expansion and persistent euro zone debt troubles.

Besides,the falling rupee added to investor woes,especially those who have parked funds in imports-linked sectors. The rupee fell to 28-month low at 49.90 per dollar and was the worst performer among Asia8217;s 10 most-traded currencies,brokers said.

Metals,capital goods,auto,consumer durables,banking and refinery stocks were hit hard.

RIL,HDFC Bank,HDFC,Lamp;T,Tata Motors,Infosys,Tata Steel and Hindalco contributed over 150 points to the fall.

After falling 704 points yesterday,the worst single day performance in 26 months,the 30-share BSE barometer opened weak and dipped to a low of 16,052.47,losing 300 points on the back of weak Asian trend as US markets plunged.

However,there was some buying by domestic funds at lower levels amid positive openings in European markets as G-20 group of countries said they will work together to resolve the debt problems.

Sensex rebound to a high of 16,368.41,but fell again on late profit-booking to close at 16,162.06,down 199.09 points or 1.22 per cent.

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The broad-based NSE 50-issue Nifty today slumped 55.90 points or 1.14 per cent to close at 4,867.75.

Globally,Dow Jones and Nasdaq plunged 3.51 per cent and 3.25 per cent yesterday. The US Federal Reserve has given a gloomy view on the American economy. Besides,weak Chinese economic data and escalating debt crisis in the euro zone,especially Greece,sent global stocks crashing.

8220;We are in a tough global situation with the US and Europe at the centre of the turbulence. Emerging markets like India and China are better placed but cannot remain insulated from that mess,8221; said Amar Ambani,Head of Research,IIFL.

FIIs dumped shares worth Rs 1,234.60 crore yesterday as per Sebi data.

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Asian markets extended Thursday8217;s heavy losses,with key indices from China,Hong Kong,Singapore,South Korea and Taiwan ending lower between 0.41 per cent and 5.73 per cent.

The Japanese market was close.

European stocks washed out early gains and were down in the afternoon. The CAC was down 0.99 per cent,the DAX 0.58 pc and the FTSE 0.33 pc.

Back home,19 of the 30 Sensex scrips closed in the red while others finished in the green. The top heavyweight Reliance Industries RIL,after plunging 6.16 per cent yesterday,declined further by 2.0 per cent.

Other major losers were Tata Motors 4.81 pc,Hindalco 3.77 pc,HDFC Bank 3.10 pc,Lamp;T 2.70 pc,HDFC 2.65 pc,Her MotoCorp 2.45 pc,Coal India 2.35 pc,Tata Steel 2.22 pc and ICICI Bank 2.19 pc.

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Among sectoral indices,BSE-Metal dropped 2.28 per cent,Capital Goods 1.84 pc,Auto 1.59 pc,Consumer Durables 1.44 pc,Bankex 1.35 pc and Oilamp;Gas 1.34 pc.

The total market breadth at BSE remained weak as 1,805 stocks closed with falls,while 986 ended with gains. The total turnover was low at Rs 2,644.44 crore,from Rs 2,818.81 crore yesterday.

Company INFO More on Tata Motors

Stocks More on Reliance Industries

STOCKS/PREOPEN: Sensex to fall on global worries; techs eyed

Indian shares are set to extend a fall on Friday,in line with their Asian peers as prospects of a global recession continues to unnerve investors.

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The 30-share BSE index ,which slid 4.1 percent on Thursday in its biggest one-day fall in more than two years,is on track to post the worst weekly loss in just over a month. It is down 3.4 percent so far this week.

Export-driven software services companies such Infosys and Tata Consultancy Services would be watched as policymakers8217; failure to arrest global economic stagnation sent world markets spiraling downward.

U.S. stocks plunged on Thursday,extending a selloff to four days.

Our opening will be definitely weak,said Neeraj Dewan,director at Quantum Securities in New Delhi. But I don8217;t expect a sharp selloff.

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Asian stocks were on track for their worst weekly drop since November 2008.

The MSCI8217;s measure of Asian markets other than Japan was down 1.67 percent by 0302 GMT. Japanese markets were shut on Friday for a public holiday.

The Nifty India stock futures in Singapore were down 0.65 percent,indicating a lower opening for the Indian market.

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Dr Reddy8217;s Laboratories Ltd ,after the drugmaker announced the launch of rivastigmine tartrate capsules,a bioequivalent generic version of Exelon,in the United States.

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State-run Oil and Natural Gas Corp is considering shipping crude to India from a Syrian joint-venture if U.S. and European sanctions prevent sales continuing to refiners in Europe.

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