Rupee hits all-time low of 74.46 against US dollar

The key Indian equity market indices on Thursday opened lower following a muted trend in global markets even as the Indian rupee weakened by 24 paise and slipped to a new record low of 74.46 against the American currency. It opened at 74.31 to a dollar at the Inter-Bank Foreign Exchange Market and soon slipped to 74.46 to a greenback -- the lowest-ever it has touched. It made a slight recovery and around 9.30 a.m. and stood at 74.43 (74.4263) to a US dollar.

Forex dealers said besides strong demand for the American currency from importers, concerns of fears of rising fiscal deficit and capital outflows weighed on the domestic currency.

Meanwhile, The Sensitive Index (Sensex) of the BSE, which had closed at 34,760.89 points on Wednesday, opened lower at 34,063.82 points. Minutes into trading, it was quoting at 33,891.52 points, down by 869.37 points, or 2.50 per cent. At the National Stock Exchange (NSE), the broader 50-scrip Nifty, which had closed at 10,460.10 points on Wednesday, was quoting at 10,155.65 points, down by 304.45 points or 2.91 per cent.

Attractive valuations, along with a stable rupee and expectations of a healthy second quarter earning results, had pushed the key domestic equity indices higher on Wednesday.

Healthy buying in banking, capital goods and automobile stocks, coupled with the hopes of revival of the non-banking financial companies (NBFCs) enhanced investors' risk-taking appetite.

The Sensex was up by 461.42 points or 1.35 per cent at the Wednesday's closing. In the day's trade, the barometer 30-scrip sensitive index had touched a high of 34,858.35 points and a low of 34,346.50 points. The Nifty50, was up by 159.05 points or 1.54 per cent.

On Thursday, Asian indices were showing a negative trend. Japan's Nikkei 225 was quoting in red, down by 4.37 per cent while Hang Seng was down by 3.95 per cent, South Korea's Kospi was also down by 3.63 per cent. China's Shanghai Composite index was trading in red, down by 4.74 per cent.

Overnight, Nasdaq closed in red, down by 4.26 per cent while FTSE 100 was also down by 1.29 per cent at the closing on Wednesday.