MUMBAI: BSE Sensex falling 651.47 points (3.45%) to close at 18234.66, and the NSE Nifty lost 213.75 points (3.85%) at 5337.
After JP Morgan, HSBC Global Research and Nomura, Goldman Sachs today cut India’s growth forecast for this fiscal to 4% from 6% earlier and said it expects the rupee to touch 72 against the US dollar in the next 6 months.
The rupee, which closed at 66 to the dollar yesterday, dipped to below the 68-mark in afternoon deals.
There was a statement from the Russian defence ministry that it detected two ballistic “objects” that were fired towards the eastern Mediterranean from the central part of the sea that spooked the market.
In the last hour of trade the equity benchmarks falling 4 percent on downgrade fears, rupee depreciation and Syria tensions.
After such a heavy fall due to continuing global and local issues, experts are finding it difficult to see the real bottom for the market now. They expect further correction going ahead.
The investment bank has also put out more bearish forecasts for the rupee, expecting the currency to trade at 70 in three months, at 72 in six months and back to 70 in 12 months.
At close of trade today, Banks were hit quite badly as BSE Bankex cracked 5 percent followed by Realty, FMCG, Oil & Gas, Capital Goods and Power indices with 3-4 percent losses.