Sensex drops 654 points to close at year's low

The BSE benchmark Sensex on Tuesday tanked over 650 points to close at this calendar year's lowest level of 12,676.19 points amid downgrading of outlook for India's currency to negative from stable, meaning increased risks for those investing in rupee denominated securities.

The Bombay Stock Exchange's 30-share bellwether index, which has been on downward march for last three trading sessions, tumbled by 654.32 points at 12,676.19, a level last seen on March 6, 2007.

The key index had touched the day's lowest of 12,605 and a high of 13,067.08 points.

The Sensex had lost over 1,275 points in last three sessions.

The wide-based National Stock Exchange index Nifty also dropped 178.60 points at 3,861.10, after touching a low of 3835.50 and a high of 4040.70 points.

Selling pressure gathered momentum after reports of international rating agency Fitch downgrading the country's debt outlook and currency. The market, which was down till mid-session on weakening global trend, rolled down further to settle with hefty losses.

Marketmen said the funds were concentrating more on commodities and bullion in view of struggling equity markets, in India and on global front.

Banking stocks were worst sufferers while capital goods stocks were second worst performer following a fall in BHEL and Larsen and Toubro stocks.