Sensex ends sub-16k, Re breaches 56
The 30-share Sensex resumed below 16,000-level and dropped further to a day's low of 15,847.03 as foreign funds showed a lack of confidence as rupee plunged below the 56-level. The index finally closed at 15,948.10, a loss of 78.31 points or 0.49 per cent from its last close.
Stocks across Europe and Asia tumbled amid euro hitting 20-month low as investors doubted whether the 27-national block European Union would be able to find a solution for the mounting debt crisis. Their fears were further intensified after reports said former Greek Prime Minister Lucas Papademos suggested such a euro exit could be approaching.
With a bout of global risk-aversion setting in, foreign funds continued to pull out dollars from India pulling rupee further to touch a new low of 56.22. In the past two sessions, the domestic currency has lost nearly 100 paise as unabated fund flows continued.
"Rupee breached the key psychological level of 56. Macroeconomic worries arising from the country's high fiscal and current account deficits, sharply falling rupee against the dollar and slowing economic growth hurt investor sentiment adversely. Eurozone debt worries also weighed on investor sentiment," said Sharmila Joshi, Head Equity, Fairwealth Securities.
Bharti Airtel which shed 4.04 per cent was the biggest loser
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