Fresh measures by the Reserve Bank of India (RBI) to stem the rupee’s slide strengthened it by a hefty 138 paise to trade at 65.69 against the dollar on Thursday.
With Raghuram Rajan taking over as the 23rd governor of the RBI, the stock market responded with a bearish rally.
A little after 11 a.m., the S and P Sensex of the Bombay Stock Exchange (BSE) was trading just below 19,000. IT stocks were hit quite badly on profit booking and rupee appreciation.
Infosys and TCS fell 2.6 percent each while Wipro lost one percent. Experts said that the overshooting rupee may see some stability in the near-term and reduce panic in the market, but may falter again on strong US jobs data.
Photo : AFP