Sensex falls by 1,000 points, rupee goes down further

 
Sensex falls by 1,000 points, rupee goes down further

New Delhi: After a stiff fall in the rupee, Sensex fell more than 1,000 points on Friday because of global cues, dealers said. Equity indices dragged for the third straight session. The 30-share BSE index tanked 1,020 points or 1.73% to settle at 58,099. It fell 1, 1137 points. The NSE Nifty declined by 302 points to end at 13, 327.

Consequently, PowerGrid, M&M, SBI, Bajaj Finserv, Bajaj Finance and NTPC remained the top losers. Nevertheless, Sun Pharma, Tata Steel and ITC remained the only winners on the BSE, shooting up to 1.53%. One of the reasons for the fall in Sensex is the central bank barring Mahindra Group’s financial services arm from using third-party agents to recover loans.

The Reserve Bank of India asked the company to stop using third-party services to recover loans until further orders. Accordingly, the shared of Mahindra and Mahindra Financial Services fell 13.1%.

The Nifty Bank index has gained by about 19%. Meanwhile, investor feared that an aggressive stance by US Federal Reserve would trigger foreign fund outflow. According to reports, after falling by 71 paise on Thursday, the rupee fell by 19 paise on Friday. It was as low as 80.98 against the Dollar. At the foreign exchange market, the rupee breached the 81-mark for the first time ever and went down by 81.23 against the US currency.