It was bloodbath in markets on Friday with Sensex crashing 769.41 points, the biggest fall in 4 years, to end at 18,598 on fresh concerns about US stimulus withdrawal and rupee plunging to record low of 62, draining investor wealth by Rs 2 lakh crore.

After gaining 703 points in the last four sessions, the Sensex plunged 769.41 points, or 3.97 percent, to 18,598.18 on all-round selling. Consumer durables, realty, banks and metal sector took major beating.
Dipen Shah, Head of Private Client Group Research, Kotak Securities said: "Markets started on a soft note on weak global cues but fell suddenly and sharply on continuing concerns over the depreciating rupee and tapering of monetary stimulus by Fed. Rupee fell to an intra-day low of 62 / USD."
The broad-based National Stock Exchange index Nifty nosedived by 234.45 points, or 4.08 percent to 5,507.83, after touching day's low of 5,496.05. Also, SX40 index, the flagship index of MCX-SX, closed at 11,083.52, down 428.63 points or 3.72 percent.
In 30-share Sensex pack, barring Hero MotoCorp, all stocks closed with heavy losses. Major losers were Reliance Industries (4.62 pc), Sterlite Ind (6.65 pc), ONGC (6.06 pc), Jindal Steel (5.46 pc) and L&T (5.19 pc) and Maruti (4.84 pc).
Others like SBI (3.32 pc), BHEL (10.70 pc), GAIL (6.49 pc), HDFC (5.81 pc), HDFC Bank (5.05 pc) and ICICI Bank (5.02 pc) also bore the brunt of investor selling.
Brokers said a weak trend in Asian and European markets on speculation that US Federal Reserve might roll back monetary stimulus after jobless claims in US declined to lowest level since 2007, further influenced the market.

Sectorally, the consumer durable sector index suffered the most by losing 8.38 per cent to 5,893.26, followed by realty index by 6.07 percent to 1,263.77. Metal index fell by 5.56 percent to 6,953.89 and bank index by 5.55 percent to 10,800.62.

Rupee falls to record low

The rupee dropped to a record low of 62.00 per dollar in late morning trade on Friday on good demand for the US currency from banks and importers in view of sharp fall in equity market.

The rupee resumed slightly higher at 61.35 per dollar as against the last closing level of 61.43 at the Interbank Foreign Exchange (Forex) Market.

But, it fell sharply to an all-time low of 62.00 on good dollar demand from banks and importers in view of fall in equity market, before quoting at 61.90 per dollar at 1045 hours.

It moved in a range of 61.32 and 62.00 per dollar during the morning deals. Also, the Indian benchmark BSE-30 share index, Sensex, dropped sharply by 438.81 points or 2.27 percent while quoting 18,928.78 at 1045 hours.

In global market, the US dollar see-sawed against major rivals in the early trade, in line for further volatility as the week wraps up with more data to fuel Federal Reserve consideration of tapering monetary stimulus.


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