 "Bloodbath: Sensex closes down 300 pts on weak rupee; JSPL biggest loser")
The Indian markets closed at their lowest levels since April 18 after the rupee’s new record low dashed rate-cut hopes.
The BSE Sensex closed at 19143.00, down 1.53 percent, while the Nifty closed at5788.80, down 1.52 percent.
Pradeep Khanna, MD & Head FX Trading, HSBC Group said massive selling in debt markets from foreign institutional investors (FIIs) has led to all-time low for the rupee.
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“The numbers support something around US Dollar 3-3.25 billion so far and that is money that is being repatriated. So, I think till that flow is done, we are likely to continue to see a fair amount of one off demand in the market and that is likely to continue to keep the currency weak, he said in an interview with CNBC-TV18.
“We must also remember, we are trading in the backdrop of weak Asian currencies and that continues to also add a bit of weakness in terms of sentiment,” he added.
Meanwhile,chief economic advisor, Raghuram Rajan said that gold imports,one of the key drivers forcountry’s widening current account deficit,have come down in the first fortnight of June this year.
Rajan also tried to calm the currency market by saying that the rupee depreciation against the US dollar is in line with other emerging market currencies, which are also falling.The Indian rupeetumbled to a record low at 58.98 against the greenback today.
Jindal Steel and Power was the biggest loser in the stock market closing down 15.18 percentafter the Central Bureau of Investigation filed an FIR against Congress MP and company chairman Naveen Jindal in the coal scam case.
Bank shares were also down on weak rupee. ICICI Bank, HDFC bank and Allahabad bank were among the biggest losers.
Real estate stocks were also down with DLF losing 4.72 percent at the close.
Mahindra Satyam was the biggest gainer closing up 4.17 percent after theAndhra Pradesh High Court gave its approval for the merger of Mahindra Satyam with Tech Mahindra.