Mumbai, Aug 27

A benchmark index of Indian equities markets closed the day's trade nearly 600 points or three percent down, as concerns grew over the steep rupee fall and the effect the Food Security Bill entailing expenditure of nearly $20 billion will have on the current account deficit.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 18,460.72 points, closed at 17,968.08 points (provisionally), down 590.05 points or 3.18 percent from the previous day's close at 18,558.13 points.

The Sensex touched a high of 18,460.72 points and a low of 17,921.82 points during trade so far.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) closed the day's trade (provisional) down 189.05 points or 3.45 percent down at 5,287.45 points. 

The bearish sentiments were fanned by the steep fall in the rupee, which tumbled to its historic low of of 66 against a dollar, surpassing its previous record low of 65.56 against a dollar on Aug 22.

There were also concerns over the widening of the fiscal deficit as the lower house of parliament Monday passed the Food Security Bill which will cost nearly $20 billion. 

Month-end dollar demand from importers dragged the currency lower, said traders. 

Except the information technology (IT) sector, all other scrips were trading in the red. Heavy selling pressure was observed in banking index (bankex), capital goods, metal, automobile and public sector undertakings (PSUs).

The S&P BSE bankex plunged 569.94 points, capital goods index tanked 345.17 points, metal index dropped by 278.16 points, automobile index slipped 265.19 points and PSU index dipped 198.38 points.

However, the IT index went up by 11.83 points. 

By:IANS

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