The BSE benchmark Sensex extended losses for the second straight session and fell below 16,000-mark in early trade on Wednesday after investors became jittery with rupee slumping to a new record low amid fund outflows.
The Sensex fell by 97 points to 15,928. On similar lines, the NSE Nifty lost 27 points to 4,832.
At the Interbank Foreign Exchange (Forex) market, the domestic unit was last trading at its record low of 55.82 per dollar from its last close of 55.39.
Forex dealers said capital inflows, the major driver behind rupee’s appreciation, were absent in view of the global worries.
Brokers said selling pressure emerged on foreign funds selling after the rupee tumbled to new record lows despite Reserve Bank announcing measures to support the falling currency.
They said a weak trend on other Asian markets following overnight losses at the US market, also influenced the trading sentiment here.
After the rupee plunged to its previous low of 55.04 against the American currency on Monday, RBI had imposed restrictions of USD 100 million on “position limit” for forward contracts by banks. It also advised the banks dealing in foreign currency to bring down their trading limits by June-end.
In the Asian region, Japan’s Nikkei fell by 1.21 percent, while Hong Kong’s Hang Seng shed 1.54 percent in early trade. The US Dow Jones Industrial Average ended marginally 0.01 percent lower in yesterday’s trade.
–PTI