The rupee fell to an all-time low against the dollar on Monday. It ended the day’s trade at Rs52.15 for every US dollar. Monday’s fall occurred despite some dollar sales from the Reserve Bank. FII inflows into India have been drying up for a variety of reasons. Investors are taking refuge in the dollar because of the global uncertainty. India’s falling stock markets have added to the problem.
Of course, Indian stocks ended Monday in the red as well, marking their eighth straight session of decline. The Sensex plunged 425 points to 15,946. And the Nifty fell 127 to 4,778.
Banking stocks were among the big losers of the day. SBI dropped 3.04% on the BSE to 1,673.05. And ICICI Bank plummeted 4.90% by the end of trade. Among IT stocks, Infosys declined 2.86% to 2,661.20. And TCS lost 2.12% to finish at 1,064.95.
And finally, Maruti Suzuki is pessimistic about its sales this year. On Monday the auto giant said it did not expect to see a growth in sales volumes this fiscal. He added that the entire Indian auto industry was likely to grow just 2-3% this year. Car makers have been hit by poor economic conditions through much of 2011.