Sensex tumbles 405 points on weakening rupee

16/08/2007 Mumbai: Worried stock brokers monitoring the falling sensex as BSE sensex closed down at 642 points in Mumbai on August 16, 2007. Photo: Paul Noronha

The BSE benchmark Sensex on Thursday tumbled over 405 points on FII outflows as investors feared that weakening rupee will hit importers and government finances, amid falling European markets.

Of the 30 Sensex scrips, 28 tumbled, while two ended in the green. All the 13 sectoral indices closed in losses.

Market heavyweight Reliance Industries dropped 4.15 per cent, and Infosys by 1.39 per cent. The two carry 20 per cent weight on the Sensex.

The index, which had gained 328 points in the last two trading sessions, dropped by 405.24 points, or 2.30 per cent to 17,196.47, after hitting the day’s low of 17,136.50.

The NSE 50-issue index Nifty plunged 136.50 points, or 2.54 per cent to 5,228.45 with stocks of realty, power and banking sectors suffering the most.

Brokers said the rupee’s falling to more than two months low, breaching Rs 51 per US dollar level, triggered selling.

They said a weakening trend in the European stock markets on fears that China’s manufacturing may contract further, also hit the market sentiment.