Falling for a third consecutive day, Sensex dipped 1000 points to end the day below 58,200, as banking stocks dragged it down ahead of a possible 50 point rate hike by RBI. Breaking its rally over the US Federal Reserve’s move to increase interest rates, Nifty also lost 300 points and closed below the 17,300 level.
The Rupee has fallen to another all time low to breach the 81 mark against the US dollar, as predictions of more aggressive US Fed rate hikes triggered accelerated dollar buying. After RBI’s directive asking Mahindra Finance to stop loan recovery via third party agents, the firm’s shares tumbled by 8 per cent.
Power and real estate sectors were also among the biggest losers on the stock market, as Asian markets mirrored the fall of global indices for the third day in a row. Japanese markets were closed for the autumn equinox festival and Chinese markets continued their losing streak.
