The equity markets fell for the third consecutive day amidst broad based selling in global equities while the Indian rupee plummeted to a two year lows in the intra-day trade after the stimulus packag
The equity markets fell for the third consecutive day amidst broad based selling in global equities while the Indian rupee plummeted to a two year lows in the intra-day trade after the stimulus package announced by the European Central Bank’s (ECB) on Thursday fell short of market expectations. The fear about an interest rate hike by the US Federal Reserve also led to subdued sentiments on the domestic bourses.
Mirroring the trend in the global markets, the Sensex slumped 248.51 points or 0.96 per cent to end the day at 25,638.11. The Nifty dropped 82.25 points or 1.05 per cent to close at 7,781.90. According to the provisional data released by the stock exchanges, foreign portfolio investors (FPI) offloaded shares worth Rs 1,745.73 crore on Friday. “The ECB cut its deposit rate by 10 basis points against the expectation of 20 basis points. Though ECB did extend its bond-buying program to at least March 17, it has not increased the quantum of monthly bond buying program. Hence, global investors have turned cautious. Additionally, a rally in US dollar have tuned sentiments negative towards emerging markets like India,” said Vinod Nair, head of fundamental research at Geojit BNP Paribas Financial Services.
The Indian rupee plunged sharply to breach its psychological 67 level mark against the US dollar in the intra-day trade amidst heavy buying of dollar by importers and persistent selling by overseas investors. However, suspected intervention by the RBI helped the rupee to regain its lost ground and close the day at 66.69 per dollar.
