Grim global outlook weighed on domestic shares that continued to plunge in line with world equities. The rupee weakened past the 45-per-dollar mark for the first time since end March weighed down by weak sentiments. The domestic currency started the day weak and continued moving lower through the day trailing losses in the benchmark index. Meanwhile, the U.S. unit was notching gains overnight against major currencies as investors were losing appetite for risky assets.
The key benchmark indices cut losses after an initial slide triggered by weak global stocks, which fell on lingering worries about sovereign debt issues in the euro zone. The BSE Sensex fell below the psychological 17,000 level in morning trade after flirting with that level earlier. The benchmark Sensex was down 117.43 points or 0.69%, up close to 20 points from the day's low.
The local currency commenced Thursday at Rs. 45.10 per US dollar and continued to weaken through the day. Rupee registered an intra day low at 45.20 and hit the day's high at 45.10 so far during the day. The partially convertible currency was last seen trading at 45.16 at 11.13 AM IST, losing almost 0.22 paise or 0.49% as compared to the previous close at 44.94.
In the domestic currency futures market, rupee for the front month May contract on NSE commenced on Thursday at Rs. 45.15 against the US dollar. The contract hit an intra day high at 45.14 and registered the day's low at 45.24. Rupee was last seen trading at 45.23, losing almost 0.19 paise or 0.42% from the previous close of 45.04. Rupee is expected to face intra day support at 45.14.
In the domestic bond market, the yield on new 10-year federal paper, 7.80% GS 2020, increased 4 bps to 7.65% at 10.45AM IST, compared to 7.61% at close in the previous trading session. Meanwhile, the yield on 10-year benchmark federal paper, 6.35% GS 2020, also increased 1 bps to 7.99% from previous close of 7.98%.
Meanwhile, light sweet crude oil for June delivery was trading up 0.07 cents to $80.04 per barrel on the New York mercantile exchange.
