Nifty plunges to multi-year low as rupee rampage continues

Mumbai: Worsening macro-economic situation and relentless slide of rupee amid downgrading fears shattered investors' confidence, prompting an across the board sell-off on bourses with stocks crashing to fresh multi-year lows.

The benchmark Nifty tanked by a hefty 98.90 points, or 1.83 percent, to close at 5,302.55 on the National Stock Exchange (NSE). It hit a high of 5,504.10 and low of 5,268.45 earlier.

Free-falling domestic currency continued its downslide for the fifth trading day in a row, plummeting to new record low, dashing hopes despite series of measures taken by RBI.

Deteriorating domestic macroeconomic conditions made the outlook gloomy for the Indian rupee (INR) in near future.

Trading began on a buoyant note with a sharp rebound in key benchmark indices mainly led by heavily beaten down financials alongwith interest rate sensitive counters and some short covering against the backdrop of overnight fresh measures to inject liquidity into banking system.

Late on Tuesday, in a major reversal from its earlier stand, the central bank took steps to support the beaten-down bond market to bring yields and market interest rates down sharply to protect lenders from large mark-to-market losses including Rs 8,000 cr bond buy-back and easing NRI investment norms. Bond yields had crossed 9 percent mark yesterday, the highest in five years.

However, bourses took a sudden U-tern in noon trade as volatility once again stuck witnessing heavy profit-taking and gave back entire early gains after the rupee fell back to new record low of 64.52 against dollar. The sell-off continued till the end session inflicting heavy losses on market front.

Sentiment remained weak across the global financial markets a day after heavy sell-off and caution ahead of the US central bank`s latest policy meeting minutes release later in the day.

FMCG, Healtcare, Energy, Technology, Auto, metal and Capital goods related counters remained under intense selling pressure while Bank Nifty ended marginally higher led by heavyweights.

Ranbaxy, Sesa Goa, ACC, JP Associates, Bharti Airtel, Reliance Infra, Reliance, Ambuja Cement, BPCL and Hindalco were among the key losers. Notable gainers included Indusind Bank, BHEL, HDFC, HDFC Bank, ICICI Bank, Bank of Baroda, Power Grid, Axis Bank, SBIN and PNB.

Turnover in the cash segment rose to Rs 13,631.07 crore from Rs 12,654.01 crore yesterday. A total of 7,196.30 lakh shares changed hands in 69,44,410 trades. The market capitalisation stood at Rs 57,03,726 crore.

PTI