Falling rupee, weak global cues drag indices down

AMID WEAK GLOBAL cues, the equity indices fell up to 0.64% on Tuesday, largely driven by the sharp depreciation of the rupee, which hit a fresh record low and breached the 91-mark for the first time, and persistent FPI outflows.

- KISHOR KADAM

The Sensex slumped 533.50 points, or 0.63%, to close at 84,679.86, while the Nifty fell 167.20 points, or 0.64%, ending the session below the 26,000mark at 25,860.10. However, the fall in Indian equities was relatively modest compared with other major Asian markets, with South Korea falling 2.24%, Japan 1.56%, Hong Kong 1.54%, Taiwan 1.19% and China 1.11%.

Investors' wealth eroded by ₹3.02 lakh crore to ₹467.85 lakh crore. "Continued rupee weakness to fresh record lows, driven by persistent FII outflows and subdued global sentiment, dragged domestic markets into the negative territory," said Vinod Nair, head of research, Geojit Investments.