The BSE benchmark Sensex slip below the 16,000 points level in early trade today, losing nearly 232 points on heavy selling by funds and retail investors. Today At 09.30 am, the Nifty index was down over 60 points and closed in on the 4,800 level. The rupee had touched an intra-day record low of 54.60 before settling at Rs 54.47against the U.S. dollar on Thursday. The rupee fell by 35 paise on Friday, to trade at a low level of all time time Rs 54.82 against the U.S. dollar in early trade on increased capital outflows and strong demand from importers for the currency U.S..
Independent analyst Sarvendra Srivastava said “ The fact that the bounce did not last even for two sessions, indicating the medium-term targets around 4,000 to 4,200.
The 30-share barometer, which closed up 40 points in Thursday’s session, fell 231.97 points, or 1.44%, to 15,838.51. The broad-based National Stock Exchange indexNifty too far below the critical level of 4800 points. There was less trading 73.80 points, or 1.51%, to 4,796.40.
U.S., data indicates that the manufacturing contracted in the mid-Atlantic sector for the first time in eight months. The Dow Jones fell 156 points to 12,442.
Traders said that apart from capital outflows by foreign funds, strengthening of the dollar against the euro, which fell to a low of four months of renewed concerns over deepening eurozone debt crisis, put crisis on the rupee.
The losses followed a sell-off in Europe and on Wall Street as dealers become more risk-averse, which added to pressure on the euro.