Rupee devalues - Stock Market tanks

The value of the Indian Rupee fell 1.6% today (21-Nov-2011) to close at 52.155 against the US Dollar, and the way things are poised it is likely to breach its all time low of 52.20 that it had touched on 3 March 2009.

This is likely to make imports expensive, and especially impact the oil imports which are already playing havoc with inflation.

Experts believe this has happened due to large scale exiting of the FIIs from the Indian Stock markets.

The stock markets in India tanked -

• the Bombay Stock Exchange (BSE) Sensitive Index (SENSEX) witnessed a fall of 425 points (2.6%) to close at 15946, just below the sentimental level of 16000.
• the NIFTY index of the National Stock Exchange (NSE) too witnessed a 2.6% fall (127 points) to close at 4778.

Similar, dismal trends were displayed by the European Stock Exchanges, also.