Written by: Express News Service
2 min readMumbaiJul 4, 2013 01:13 AM IST
First published on: Jul 4, 2013 at 01:13 AM IST
The Sensex today tumbled by 286 points to end at 19,177.76 as rupee breaching the 60-mark and draft norms on banks exposure to corporates with unhedged forex triggered all-round selling.
The 50-issue Nifty of the NSE also tumbled by 86.65 points,or 1.48 per cent to end below 5800-mark at 5,770.90. Also,SX40 index,the flagship index of MCX-SX,closed 153.09 points,or 1.32 per cent lower at 11,413.38.
Sensex has now erased its entire gain for the year and is down 1.28 per cent,after hitting a 20,443.62 peak on May 20. Outflows from emerging markets are gathering pace,with investors withdrawing a record 5.7 billion from bond funds in the week ended June 26 after Bernanke said he would cut back stimulus as the US labour market improves,as per EPFR Global data.
Meanwhile,the rupee weakened by 55 paise to close below at 60.22 against the US dollar on concern that foreign investors will pull more money from local stocks and debt,leaving the currency vulnerable to a record current account deficit.
The rupee tracked other emerging market currencies as new signs of a slowing Chinese growth and a deepening political turmoil in Portugal kept risk aversion high.
Among other Asian currencies,S Korean won fell by 0.86 per cent,Malaysian ringgit by 0.60 per cent and Thai baht by 0.36 per cent.
On the other hand,the benchmark 10-year bond yield ended 4 basis points higher at 7.50 per cent on Wednesday,after moving in a range of 7.49 per cent to 7.52 per cent during the day,raising fears about inflation and the possibility of the RBI not cutting rates in the next policy review.
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