Markets slump on weakening rupee

Reliance, Infosys, ITC and bank shares witness selling pressure

Benchmark share indices slumped to their day lows after the rupee dropped to its lowest level against the US dollar. The losses were led by index heavyweights Reliance Industries and Infosys along with ITC and bank shares.

The Sensex was down 166 points at 16,867 after touching an intra-day low of 16,856 while the Nifty was down 54 points at 5,111 after touching an intra-day low of 5,097.

The Indian Rupee hit an all time low of 57.22 to the US dollar.

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(Updated at 11:30am)

Markets moved sideways in afternoon trades with the Sensex trading down 84 points at 16,948. Nifty was down 19 points at 5,146.

The rupee plunged by 57 paise to a new low of Rs 56.87 against the dollar in early trade today on increased capital outflows and rising demand from importers for the American currency. Besides, strengthening of dollar against the euro also put pressure on the local unit.

On the global front, Japan's Nikkei average fell on Friday as data showing U.S. manufacturing grew at its slowest pace in 11 months in June added to concerns about weaker growth in Europe and China, but the index was still headed for best weekly gain in four months.

BSE metal and oil & gas indices have slipped nearly 1% each in trades.

However, the BSE auto index has gained 0.8% at 9,411 following the Calcutta High Court ruling on Singur Land case.

Tata Motors has moved higher by 1.2% at Rs 251, bouncing back more than 3% from intra-day’s low after Calcutta HC striked down Singur Land Rehabilitation and Development Act saying that the act “Unconstitutional and Void”.

Among other auto shares - Maruti has jumped 2% at Rs 1112. Hero MotoCorp has added 1.5%, followed by Bajaj Auto and Mahindra & Mahindra.

Banking major - SBI has rebounded into green and is trading flat at Rs 2,179. However, ICICI Bank and HDFC Bank are down half a per cent each.

Hindalco and Tata Steel, from the metal pack, have delcined 1.5% each following a sell-off in global commodities. Reliance is the key dragger - and accounts for a 19 point loss on the Snesex. Among other losers are Infosys, Larsen & Toubro and Coal India.

Among, individual stocks, Welspun Corp has moved higher by 1.2% at Rs 122 after the company said it has won pipes orders worth of Rs 1,738 crore from international and domestic markets.

Cox and Kings has rallied 5% to Rs 129 on reports that the company is in talks with some private equity (PE) funds to sell a minority stake in its UK subsidiary.