MUMBAI: A combinations of domestic and global factors weighed heavily on the markets on Wednesday, pulling the sensex to a two-year low, while the rupee dipped to an all-time low but closed much stronger on suspected RBI intervention. With the global markets still looking extremely shaky, market players here feel that the current weakness could continue for a few more sessions.
Factors like margin calls for speculators, the continuing political impasse at the Centre that forced no business at the ongoing session of the Parliament, the weakness of the rupee, lower growth numbers in the US and the lingering weakness in Europe left Dalal Street investors jittery for the tenth successive session. As a result, the sensex dipped to a low at 15,479, but recovered some lost ground in late trades to close 365 points lower at 15,700.
The session's slide also left investors poorer by Rs 1.1 lakh crore with BSE's market capitalization now at Rs 55.2 lakh crore, also a two-year low. The slide for the sensex, ninth in the last 10 sessions, was led by foreign fund managers who took out nearly Rs 1,200 crore from the stock market. The day's net outflow took the last seven session's aggregate tally to about Rs 4,850 crore ($920 million).
Factors like margin calls for speculators, the continuing political impasse at the Centre that forced no business at the ongoing session of the Parliament, the weakness of the rupee, lower growth numbers in the US and the lingering weakness in Europe left Dalal Street investors jittery for the tenth successive session. As a result, the sensex dipped to a low at 15,479, but recovered some lost ground in late trades to close 365 points lower at 15,700.
The session's slide also left investors poorer by Rs 1.1 lakh crore with BSE's market capitalization now at Rs 55.2 lakh crore, also a two-year low. The slide for the sensex, ninth in the last 10 sessions, was led by foreign fund managers who took out nearly Rs 1,200 crore from the stock market. The day's net outflow took the last seven session's aggregate tally to about Rs 4,850 crore ($920 million).
Although
domestic institutions continued their buying, it failed to cushion the
selling by FIIs. The recent selling by FIIs also had its effect on the
forex market with the rupee dipping to an all-time low at 52.75 to the
dollar, but recovered most of its day's losses to close at 52.38, weaker
by just 6 paise from Tuesday's close. The smart recovery came on
suspected dollar selling by the central bank at around 52.55 level,
market players said.
Around the globe, most major markets closed in the red after a German government bond issue generated muted investor response. In Asia, the Hang Seng index in Hong Kong closed over 2% lower, while in Europe FTSE was down 1.3% and Dax in Germany closed 1.4% lower. In mid-session on Wednesday, Dow Jones index in the US too was in the red, down 1.7%.
Around the globe, most major markets closed in the red after a German government bond issue generated muted investor response. In Asia, the Hang Seng index in Hong Kong closed over 2% lower, while in Europe FTSE was down 1.3% and Dax in Germany closed 1.4% lower. In mid-session on Wednesday, Dow Jones index in the US too was in the red, down 1.7%.
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