BSE Sensex tanks 526 points; Nifty drops below 5700
Zee Media Bureau
Mumbai: The BSE benchmark Sensex fell for the third straight day by losing over 526 points Thursday its biggest intra-day fall since March last year on capital outflows as the rupee hit record low against the dollar amid a weakening trend in the global markets.
The 30-share barometer after losing over 423 points in early trade, fell further by 526.41 points to slip below 19,000-point level to trade at 18,719 points.
Similarly, the wide-based National Stock Exchange index Nifty dipped below 5,700 points by losing 166.35 point to trade at 5,655.90.
Trading sentiment turned extremely bearish after the rupee slumped to life-time low of 60 against the dollar and a weak trend in the global market on concerns that inflows to emerging markets may hit after US Fed taper off its stimulus programme later this year.
The Fed`s policy-making committee said Wednesday the economy continued to grow at a "moderate" pace but would maintain its USD 85-billion-a-month bond-buying programme, citing high unemployment and the negative impact of government spending cuts.
However, chairman Ben Bernanke said afterwards "the committee currently anticipates that it would be appropriate to moderate the monthly pace of purchases later this year" if the economic outlook continues to improve.
Stressing that "our purchases are tied to what happens in the economy", he said most members of the committee foresaw tapering in the coming months.
The announcement sent US stocks tumbling -- the Dow fell 1.35 percent, the S&P 500 lost 1.39 percent and the Nasdaq tumbled 1.12 percent -- while the yield on US Treasuries jumped.
With Agency Inputs