Markets slumped on Tuesday and rupee hit a life-low of 66 per US dollar as investors feared that the country’s current account deficit may widen further after Lok Sabha approved $20 billion plan to provide cheap food to poor. Risk appetite further dampened on fear over military action by the US after Secretary of State John Kerry held Syrian government accountable for using chemical weapons in an attack over civilians. Mirroring the concerns, the 30-share Sensex declined 590.05 points or 3.18 per cent to close at 17,968.08 and the 50-share Nifty dropped 189.05 points or 3.45 per cent at 5,287.45 levels. India VIX (Volatility Index), the key gauge of the market volatility, touched its 20-month high. The index closed at 29.42, up 12 per cent in today’s trade. Global investors have sold about $720 million of shares in the previous six sessions through Friday, ahead of June quarter GDP data and the expiry of August derivatives contracts this week. The broader markets fell with mid-caps and small-caps dropping 1.5-2 per cent on the BSE. The market breadth was negative. Out of 2,395 stocks traded, 1,532 stocks declined while 724 stocks advanced on the BSE.

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