Sensex on Monday crashed 1,624.51 points

The benchmark Sensex on Monday crashed 1,624.51 points — its biggest single-day fall — ending below 26,000 on heavy outflows as the rupee sank 82 paise to a fresh two-year low of 66.65.

The index ended the day 5.94 per cent down at 25,741.56 points as jittery investors sold off shares across all sectors including energy, banking, auto, IT, infrastructure and real estate.
Turmoil in currency long-coming’

Amid free fall in stock markets, the rupee crashed to 66.65. The rupee has not seen such a low level in almost two years in opening trade.

As stocks and rupee hit new lows, RBI Governor Raghuram Rajan said the country is in a better position than many other economies. “I wish to reassure markets that all macro-economic factors are under control. The country has forex reserves of $380 billion to be used,” he said.

He said the turmoil in currency market has “been long-coming and China is only the last step in it.”

Oommen Ninnan reports from Mumbai:

Slowing Chinese economy and the devalued Chinese currency Yuan, hit the global financial markets. “It has been a while since we have seen a fall of this magnitude in our equity markets,” said Jayant Manglik, President, Retail Distribution, Religare Securities Ltd. This fall has largely been in reaction to the global markets carnage, “the second effect of which has been a weaker rupee,” Mr. Manglik added.

Global markets have crashed following weeks of reports regarding China’s low economic growth as its consumption story falters. This is in addition to other irritants such as Europe’s woes and a general slowdown in economies across the globe. The US rebound story too is yet incomplete.

“In such markets”, said Mr. Manglik, “The Indian economy still remains a bright spot. Of course, low commodity prices are good for India but a global slowdown is not.”

205 stocks hit 52week low

Stocks that hit their 52-week low included Aban Offshore, ABG Shipyard, Adani Power, Gail, ICICI Bank, NTPC, ONGC, Tata Motors, Tata Steel, VST Industries, among others.

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