Mumbai, May 23 - The BSE benchmark Sensex today ended below 16,000-level for the first time in more than four months and the rupee breached the 56-mark to a new low with investors exiting risky assets in view of turmoil in Europe as reports strengthened chances of Greece exit from Eurozone.
The 30-share Sensex resumed below 16,000-level and dropped further to a day's low of 15,847.03 as foreign funds showed a lack of confidence as rupee plunged below the 56-level. The index finally closed at 15,948.10, a loss of 78.31 points or 0.49 per cent from its last close.
Stocks across Europe and Asia tumbled amid euro hitting 20-month low as investors doubted whether the 27-national block European Union's informal meeting later in the day would be able to find a solution for the mounting debt crisis. Their fears were further intensified after reports said former Greek Prime Minister Lucas Papademos suggested such a euro exit could be approaching.
With a bout of global risk-aversion setting in, foreign funds continued to pull out dollars from India pulling rupee further to touch a new low of 56.22. In the past two sessions, the domestic currency has lost nearly 100 paise as unabated fund flows continued.
"Rupee breached the key psychological level of 56. Macroeconomic worries arising from the country's high fiscal and current account deficits, sharply falling rupee against the dollar and slowing economic growth hurt investor sentiment adversely. Eurozone debt worries also weighed on investor sentiment," said Sharmila Joshi, Head Equity, Fairwealth Securities.
Bharti Airtel which shed 4.04 per cent was the biggest loser in the Sensex pack, followed by Tata Power (2.27 pc), Jindal Steel (1.85 pc) and Hero MotoCorp (1.76 pc). As many as 20 scrips in Sensex ended with losses. Investors were poorer by over Rs 25,000 crore across the markets.
"Markets were also waiting for the outcome of the informal EU summit later in the day. Continuing concerns about the outcome and the potential impact on Greece, weighed on sentiments," said Dipen Shah, Head - Fundamental Research, Kotak Securities. PTI
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