Winding down quantitative easing will be messy for the West and a big problem for India.
A potential early wind-down of the US stimulus programme and a shrink in China's factory activity pulled down markets.
Everything seems to be falling in place for the new RBI governor but there is a need to prepare for the imminent tapering by the Fed.
Jindal Steel top loser among the Sensex stocks, slips 10% in the intra-day deals.
Before jumping to build a portfolio of stocks impacted by the recent reforms, choose the ones which will benefit the most.
The broader markets traded higher with mid-caps and small-caps gaining 0.2-0.3 per cent on the BSE.
Markets slipped into negative terrain in late noon deals weighed down by profit taking in bank shares.
Traders said persistent selling by stockists in line with a weakening global trend after Federal Reserve Chairman Ben Bernanke signalled that the central bank may start curbing stimulus programme this year, mainly dragged gold and silver prices down.
The rupee fell to a record low of 59.9350 to the dollar, breaching past its all-time low of 58.98 on June 11.
Indian markets too saw a deep fall as a result of the Federal Reserve's shift in policy and the Nifty and Sensex ended down more then 2.5 per cent in the negative, whereas the Europe is trading in red too.
Even as rupee fell below 56-level against dollar intra-day, Chief Economic Adviser in the Finance Ministry Raghuram Rajan said, there is no need to panic, and RBI takes decisions on whether to intervene in forex markets or not to stabilise the local currency.
This is rupee's lowest closing since 55.45 on November 27, 2012.
Breakfast meeting between Timothy Geithner, US treasury secretary, leading industralists due Wednesday.
Investor wealth on Thursday soared by Rs 1 lakh crore, triggered by heavy buying in the stock market, with the BSE benchmark Sensex surging about 382 points to close at near six-week high levels.
Dollar selling by exporters & banks, amid higher opening in domestic equity market supported rupee.
The overall breadth is positive as 873 stocks are advancing while 425 are declining.
The Nifty touched a high of 4,861 in the morning session, but gave up all the gains and closed at 4,747, down 92 points
The rupee had ended marginally down by 1 paise at 55.63 against the dollar on alternate bouts of buying and selling amid a fag-end recovery in equities in yesterday's session.
US President Barack Obama has nominated Janet Yellen to head the Federal Reserve Board, describing her as one of America's "foremost economists and policy makers".
The Fed's interpretation of the increase in gas prices is the economist's basic mantra of supply and demand.
Observing that US' economic recovery is proceeding at a moderate pace, US Federal Reserve Board chairman Ben Bernanke said on Wednesday the central bank might need to intervene if policymakers enact short-term spending cuts that hurt growth.
Markets reversed early losses and ended higher as investors picked up beaten down frontline stocks.
India's record current account deficit has been a key reason behind why Standard & Poor's and Fitch Ratings cut their outlooks on the country's sovereign rating to 'negative' last year.
Germany is now sitting on a mountain of savings.
The unemployment rate has edged off its recent peak, but at 9.7 per cent, it is still close to its highest level since the early 1980s.
The rupee's plunging to record level and a sharp fall in the equity market are knee-jerk investor reactions to the US Federal Reserve's saying the it will slow down bond-buying programme in view of improving American economy.
The list of 22 leaders was compiled in association with Harvard Kennedy School. It also includes Federal Reserve Board Chirman Ben Bernanke, Newark city Mayor Cory Booker, Cisco Systems CEO and Chairman John Chambers and playwright-activist Eve Ensler.
The biggest challenge for central banks of the world is to unwind liquidity without hurting recovery
The NSE Nifty also closed at 16- month high at 4,958, up 66 points. US markets rose to calender year high on Tuesday after strong manufacturing and retail sales boosted commodity prices and shares of material companies.
Author Ramit Sethi's advice for getting started with investing in a vexing environment: Automatically invest and rebalance, and don't time the market
Whatever it be, an official statement from you clearly defining the extent of the problem, would be in order. At least that in my opinion, sir, would put an end to the uncertainty that is plaguing the financial markets all across the globe. And, sir, as you know, markets abhor uncertainty, for lack of trust is highly corrosive.
Overconfident, overpaid and everywhere - the 2007 vintage of MBAs.
Finance Minister P Chidambaram on Monday said the currency will find its level as steps being taken by the government to contain fiscal and current account deficits will improve investor sentiments.
The chief beneficiary of the cycle of interest rate cuts and liquidity injections will be emerging markets, specifically Asia.
From India's perspective, a decline in the dollar against the major currencies invariably means appreciation for the rupee.
A day after Federal Reserve Chairman Ben Bernanke announced the rate cut, FIIs bought shares worth over Rs 2,400 crore (Rs 24 billion), lifting the index up by 650 points, one of its biggest intra-day gains.
The markets opened with a significant positive gap joining the rally in markets across the globe
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