With a global selloff over concerns of the US Federal Reserve's bond-buying tapering impacting the currencies of several emerging markets, the rupee has been the worst performer since Thursday.
The 30-share Sensex closed 80 points lower at 21,753 levels while the 50-unit NSE Nifty index was down 38 points at 6486 levels. Benchmarks plunged to their lowest levels since March 06, 2014.
US Federal Reserve Chairper Janet Yellen hinted at raising interest rates sooner than expected, in her first press conference after assuming the top job at US central bank.
The Financial Stability and Development Council members include heads of regulatory bodies like RBI, Sebi and Insurance Regulatory Development Authority.
The robust export performance, coupled with a compression of imports led by gold, has led to a substantial narrowing in the current account deficit to comfortable levels.
Fed move based on US economic recovery, which should boost India's exports, narrow CAD and help curb 'imported' inflation
Second quarter earnings of companies, starting with the Infosys results, export-import numbers and industrial production data, could keep markets volatile in the week ahead.
The 30-share Sensex ended 56 points lower at at 20660 levels and the 50-share Nifty scrapped 14 points at 6155 levels.
Market participants said expectations of a rise in interest rates by the RBI and US Fed's comments on its stimulus programme are likely to keep the market nervous in the week ahead.
Among major gainers, ITC, Reliance Industries, Dr Reddy's and HDFC rose up to 3 per cent.
Mark Mobius, executive chairman of Templeton Emerging Markets Group still believes in the emerging markets growth story.
While Goldman Sachs says India will see a transition, HSBC feels structural imbalances will lead to cloudy outlook for markets.
Indian economic growth hit a low of five per cent in the financial year ended March 31,2013 and further slowed in the first quarter of FY14.
December is packed with key economic and political events, both at the domestic and the global level, which will decide how foreign institutional investors (FIIs) fine tune their investment strategies
Brazil and other developing nations are growing anxious about the expected withdrawal of stimulus in the United States
China would contribute $41bn towards the pool. Brazil, India and Russia would contribute $18bn each; South Africa $5bn.
Barack Obama is likely to pick a candidate to succeed Ben Bernanke sometime during the summer.
India, China and Russia have "squandered" capital by financing inefficient technologies, United States Federal Reserve Chairman Allan Greenspan has charged.
In the past four months, $7.5 billion has flowed back into domestic stocks, helping the benchmark indices bounce back more than 40 per cent from their 2020 lows.
The 30-share Sensex ended flat at 21,833 and 50-share Nifty gained 7 points at 6,524.
The market breadth, indicating the overall health of the market, was positive
Delay in the tapering of the $85 billion-a-month bond buyback programme by the US Fed (tapering will start from January 1) gave the country time to replenish the forex reserves and rein in the high current account gap.
Buffett said the economy is benefiting from improvement in areas that had not previously performed well, particularly homebuilding.
Rupee has strengthened but is this sustainable.Or are we staring at a slip very soon.
The poll predicts a better performance than this year's 9 per cent increase but far more modest than the 25 per cent surge in 2012 when foreign investors bought a massive $24.4 billion worth of Indian stocks.
Expressing concern over the rupee reaching an all-time low, the Bharatiya Janata Party (BJP) said the currency is likely to plunge further as a share of the US financial stimulus package given to India during the sub-prime crisis in 2008-09 may be withdrawn by the Federal Reserve.
The precious metal spurted to regain Rs 27,000 level after June 24 as it rose in global markets following Federal Reserve Chairman Ben S Bernanke backed sustained stimulus for the for some time.
ICICI Bank and SBI were among the top Sensex gainers along with FMCG majors ITC and HUL.
The partially convertible rupee closed at 61.77/78 per dollar compared to its close of 63.38/39 on Wednesday.
'I would recommend two parts to fiscal support. One, support the lower end of the society by direct intervention through ways such as direct benefit cash transfer. Second, give fiscal support to the stressed sectors in line with the Rs 3-lakh crore (Rs 3 trillion) emergency credit line guarantee norms'
The Sensex ends up 16 points to end at 20,514.
There was sustained selling of the American currency by exporters ahead of a decision of US Federal Reserve on tapering its monetary stimulus.
In a speech to the National Economists Club that echoed dovish comments by his nominated successor, Janet Yellen, Bernanke also said that while the economy had made significant progress, it was still far from where officials wanted it to be.
With the US housing and labour markets on the mend, the healing looks more durable, say RBS's Sanjay Mathur and Louis Kuijs.
The new Guv needs to focus on structural inflation problems.
The prime minister made a reference to orderly exit from unconventional monetary policies in the backdrop of splits between emerging markets and the US.
The rupee on Thursday plunged by a whopping 130 paise to hit life-time low of 60 against the US dollar in early trade on the Interbank Foreign Exchange on strong demand for the American currency from banks and importers
