Dalal Street witnessed its worst carnage in two years on Friday as equities crumpled, while the rupee hit a record new low — slipping below the psychological 62-level to the US dollar — after strong rumours that the Reserve Bank might impose restrictions on FII outflows after the recent capital control measures it announced to stem the rupee’s fall.
Investor sentiment was further rattled on speculation of an early tapering of American stimulus measures that had spooked global markets on Thursday, when the Indian markets were shut for the Independence Day holiday.
The Bombay Stock Exchange’s benchmark Sensex plunged by 769.41 points (3.97 per cent), its biggest single-day fall since July 2009, to end the day at 18,598.18, while the Nifty sank 234.45 points (4.08 per cent), to close the trading session at 5,507.85.