Lowest in 4 weeks

Markets today hit their lowesr in four weeks due to the concern that the falling rupee might slow down the FII investment. the indian rupee hit its three-year low of 47 per dollar. The higher crude oil prices due to the tentions in the middle east was also another reason for the fall. The index is down 21% from its may peak and the FII's have trimmed their net investments to $ 2.5 billion from nearly $ 5 billion in early May.

The BSE sensex lost 219 points or 2.15% to close at 10,007 after inta-day swing of 436 points. The biggest loosing sectors were Metals (3.95%), Auto (3.6%), IT (3.06%), Capital Goods (2.8%) ,Consumer Durable (2.3%) and FMCG (2%). The worst hit stocks were Wipro (5.5%), Satyam (5.3%), TCS (4.5%), ACC (4.5%) and Tata Motors (4.4%). ONGC (1.8%) and Ranbaxy (0.6%).

With the selling presure arround the market seems to be heading towards 9,800 - 9,900 levels. The markets have been falling constantly for two three days now and the buying had disappeared even for stocks like ACC. The net profit of ACC increased in last quarter but the stock price fell to Rs. 779.95 (4.5 %). Index heavyweight Reliance Ind. Ltd. fell 5.5% to Rs. 982.10 and Infosys by 1.5% to 1,605.9 points.

Still long term fundamentals for the Indian Economy and Business stay intact. Just recently JPMorgan Asset Management concluded that China, India, and Singapore offer Asia's best stock market investment oppurtunity. The expectaion is that a stong catalyst like change in the interest rate policy by the Federal Reserve. The valuations of the Indian stock markets have actually become more attractive after the selloff.