FPIs flee as global cues, rupee fall rout markets; fuel relief riles OMCs

Indian equities slid to their lowest levels in three months as a falling rupee, surging global crude oil prices and weak global cues weighed on sentiment. The rupee fell to an all-time low of 73.6 against the dollar on Thursday, down more than 13 per cent in the year to date, making it the worst performing currency in Asia. The rise in inflationary pressures could compel the Reserve Bank of India to raise interest rates on Friday, believe experts. The S&P BSE Sensex declined 2.24 per cent, or 806 points, to 35,169, while the 50-share Nifty slumped 2.4 per cent to 10599, below its 200-day moving average. The selloff on Thursday was led by oil marketing companies and energy major Reliance Industries, which fell 7 per cent. The government announced a cut of Rs 2.50 per litre in petrol and diesel prices and asked oil marketers to absorb another 1 rupee per litre. Shares of HPCL, BPCL and Indian Oil declined 12.2 per cent, 10.9 per cent, and 10.6 per cent, respectively. Market ...

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