Friday's carnage erased early gains, Sensex down 191 points
Posted on: 05:36 PM IST Aug 17, 2013
Friday's mayhem following fall in the rupee value to an all-time low amid concerns over the continuity of US Fed's stimulus programme washed out all initial gains of the benchmark and BSE Sensex.
It witnessed a decline of 191 points, extending losses for the fourth straight week. The market was closed on August 15, 2013 on account of "Independence Day". The Bombay Stock Exchange 30-share barometer resumed the week higher on the back of an increase in exports and hopes of additional measures to support the rupee.
On August 10, top finance ministry officials worked to firm up more steps to arrest the sliding rupee and contain the current account deficit (CAD) as they continued discussions initiated by Finance Minister P Chidambaram a day earlier.
Commerce Secretary S R Rao said exports grew 11.64 per cent to USD 25.83 billion in July, while imports declined 6.2 per cent to USD 38.1 billion, leaving a trade deficit of USD 12.2 billion.
It also ignored the data, which showed that inflation based on the Wholesale Price Index (WPI) shot up to a five-month high of 5.79 per cent from 4.86 per cent in June. Sensex then also rallied further to touch a high of 19,392.56 on Wednesday as the government on Tuesday increased import duty on gold, silver and platinum to 10 per cent to stem the rupee fall.