The 30-share index slumped to 17970.98, down nearly 337 points, after rupee breached the 64-level against dollar, However, buying by funds in beaten down shares helped the Sensex end at 18,246.04, down 61.48 points or 0.34 percent. In three days, the index has lost over 1,100 points. Re breaches 64-level vs USD; down 98 paise in morning trade JPN/Agencies
On similar lines, the National Stock Exchange index Nifty ended 13.30 points, or 0.25 percent, lower at 5,401.45, after dipping to 5,306.35. Also, SX40 index, the flagship index of MCX-SX, closed at 10829.76 with a loss of 52 points.
The fag-end buying in banking, realty and metal sector stocks helped the market to minimize losses, where as rupee falling to record low levels and weakening global markets continued to influence the trading sentiment, said brokers. The rupee hit yet another all-time low of 64.11/12 per dollar in intra-day trade.
In Sensex components, 16 stocks declined while 14 stocks ended with gains. The consumer durable sector index suffered the most by falling 3.54 percent to 5,568.05, followed by auto sector index by 2.26 percent to 10,055.58, among others.
Market sentiment was further hurt on weakening Asia and lower opening in Europe on speculation that the US Federal Reserve will soon start to scale back stimulus programme.
Emerging-market stocks fell the most in six weeks as Indonesia's record current-account gap and Thailand's recession heightened fears that capital outflows will rise.
Continuing its slide, the rupee on Tuesday breached 64-mark against dollar by falling 98 paise to trade at record low of 64.11 on persistent dollar demand and a weak opening in the domestic equity market.
At the Interbank Foreign Exchange (Forex) market, the local currency opened sharply lower at 63.75 a dollar from its previous close of 63.13 and breached 64 mark to trade at fresh low of 64.11, down by 98 paise, or over 1.5 percent.
Forex dealers said besides strong demand for the American currency from importers and banks, dollar's strength against other currencies overseas amid expectation that the Federal
Reserve will soon taper its bond-buying programme weighed on the domestic currency.
Weak domestic fundamentals such as record current account deficit concern too put pressure on the rupee, they said.
The rupee had recorded the decade's worst single-day fall of 148 paise to close at record low of 63.13 against the dollar in the previous session.
In order to arrest the rupee slide, RBI last week had announced measures such as restriction on Indian firms investing abroad and on outward remittances by resident Indians, triggering talks of return of capital control regime.
The 30-share index slumped to 17970.98, down nearly 337 points, after rupee breached the 64-level against dollar, However, buying by funds in beaten down shares helped the Sensex end at 18,246.04, down 61.48 points or 0.34 percent. In three days, the index has lost over 1,100 points.
Re breaches 64-level vs USD; down 98 paise in morning trade