Global meltdown: Sensex down 286 points as Weak Rupee, costly oil hurts


Mumbai: The Sensex on Wednesday tumbled by 286 points to end at 19,177.76 as rupee breaching the 60-mark and draft norms on banks' exposure to corporates with unhedged forex triggered all-round selling, amid weak global cues.
Investor wealth worth Rs 1.1 lakh crore was wiped out as over 1,500 stocks led by realty, metal, PSU, consumer durables and power closed down on the BSE.
Overall 11 out of 13 sectoral indices closed with losses of up to 4.76 per cent while only BSE-FMCG and BSE-HC indices bucked the trend.
Weak world stock markets, worries over China's growth, growing crisis in Egypt and fears over political instability in Portugal, pushed up crude oil prices to USD 105 a barrel.
The Bombay Stock Exchange 30-share indicator resumed remarkably lower and continued to reel under pressure to end at 19,177.76, a fall of 286.06 points or 1.47 per cent. Yesterday, it had dipped by 113.57 points or 0.58 per cent.
Similarly, the 50-issue Nifty of the NSE also tumbled by 86.65 points, or 1.48 per cent to end below 5800-mark at 5,770.90.
Also, SX40 index, the flagship index of MCX-SX, closed 153.09 points, or 1.32 per cent lower at 11,413.38.
RBI on Tuesday evening proposed incremental provisioning and capital requirements for banks' exposure to corporates having unhedged forex exposure. SBI, ICICI Bank and HDFC Bank scrips saw pressure.
Hindalco, Sterlite Ind and Tata Steel from metal pack ended 3-4 percent down on China growth fears. "There were reports that Egypt's military had drawn up plans to suspend the constitution..Portugal foreign minister resigned in protest against austerity measures. On top of it, Brent Crude has risen to $105 mark," said Sanjeev Zarbade, Vice President, PCG Research, Kotak Securities.
Fall in the rupee below 60-mark, slowdown in country's services sector activity in June, rising bad loans and capital outflows also hit the market sentiment, said traders.
Concerns over the rising oil prices that may widen the current account deficit, impacted negatively as it may prevent RBI from cutting interest rates later this month, they added.
Globally, Asian indices ended up to 2.5 per cent lower while Europe was trading with deep 1.5 per cent cut.

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