Weak rupee, rate hike fears drag Sensex
The rupee fell to 54.30 to a dollar in early trade Thursday -- a new low as demand for the US currency from importers amid volatile global economic conditions continued to pull down the Indian currency.
The RBI will conduct its mid quarterly review of monetary policy Friday.
The 30-scrip sensitive index (Sensex) of the BSE, which opened at 15,739.05 points, was ruling at 15,726.86 points, about 15 minutes into trade, 154.28 points or 0.97 percent down from its previous close at 15,870.35 points.
Data released Wednesday showed headline inflation at 9.11 percent in November still above comfort levels of policymakers.
The 50-scrip S&P CNX Nifty of the National Stock Exchange also was trading lower at 4,715.9 points, down 0.99 percent or 47.35 points from its previous close.
Broader markets were also in the red. The BSE 500 index was down 1 percent.
RBI Chief Raghuram Rajan stated that more economic data is needed to be confident that economic growth is picking up, although he added that the benefits to exports from the Rupee's fall is yet to kick in.
Date 22 hrs ago, Duration 2:19, Views 31