The Sensex plunged 530 points and the Nifty around 150 points, with brokers blaming the fall to unwinding of long positions in the futures and option (F&O) segment and fears of more bad news from Europe. The two indices recovered partially, but stayed decisively near the new two-year lows. The Sensex is now quoting at 15605 and the Nifty at 4670, with both indices rapidly tearing through key support levels like a hot knife through a slab of butter.
The rupee has firmed up a bit to Rs 52.13, but the outlook on the Indian currency remains bearish in the short term. That is because there is good demand for dollars globally due to the turmoil in the Eurozone, and back home, capital flows into the stock market could shrink further because of a bleak outlook on the economy. Banking, oil & gas, Metals and IT are the worst performing sectors at this hour.
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