Sensex tanks around 400 points as rupee sinks to new low

A benchmark index of Indian equities markets Wednesday tanked around 400 points or more than two percent as the rupee fell to a record low of 68 against a dollar.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 17,851.44 points, was trading at 17,594.41 points around 11.00 a.m., down 373.67 points or 2.08 percent from the previous day's close at 17,968.08 points.

The Sensex touched a high of 17,851.44 points and a low of 17,448.71 points during trade so far.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) lost 117.20 points or 2.22 percent down at 5,170.25 points.

The partially-convertible rupee slumped to a new record low of 68.02 against the dollar at the inter-bank foreign exchange market in Mumbai, surpassing the previous record low of 66.25 recorded Tuesday.

The rupee later breached the 68.71 levels around 10.30 a.m. The rupee had closed Tuesday at 66.25 -- a depreciation of 2.36 percent from its Monday's close of 64.72 against a dollar.

The sharp volatility in the market comes a day after it tanked around 600 points, admits heavy selling by foreign institutional investors (FIIs) showing a lack of international investors' interest in a weak Indian economy.

The markets were also concerned over the widening of the fiscal deficit as the lower house of parliament Monday passed the Food Security Bill which will cost nearly $20 billion.