Continuous slump of rupee, withdrawal of U.S. stimulus trigger black Friday on Indian stock market

2013-08-16 12:19:19 GMT2013-08-16 20:19:19(Beijing Time)  Xinhua English

NEW DELHI, Aug. 16 (Xinhua) -- The continuous slump of the Indian rupee against the U.S. dollar and withdrawal of U.S. stimulus triggered a black Friday on the Mumbai stock exchange, which saw the biggest fall of the Sensex index in four years, said local experts.

Sensex plummeted by 769.41 points, the biggest fall in four years, to end at 18,598.

Concerns about U.S. Federal Reserve stimulus withdrawal and rupee plunging to record low of 62 against the greenback worked together to cause the crash, said Dipen Shah, head of Private Client Group Research under the Kotak Securities.

Consumer durables, property, banks and the metal sector bore the brunt in the crash, said Press Trust of India.

India corporations profits have been under continuous pressure amid looming recession and lingering global slowdown, according to local media reports.

Sensex consensus earnings estimates have dropped from 1,430 rupees a month ago to 1,360 rupees currently, said local daily Business Standard Friday.

However, Indian Prime Minister Manmohan Singh expressed optimism Thursday that the country's slowdown is short term and growth would resume soon.

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