Indian equity markets continued their losing streak. Benchmark indices opened the day's proceeding on a positive note but took a sudden downward turn in the afternoon trade, as rupee slipped to another record low of 64.44/$. The rupee hit a record low as heavy dollar buying from large state-run banks along with demand from custodian banks hurt the local currency. While the BSE-Sensex closed lower by 340 points, the NSE-Nifty closed lower by 98 points. BSE Mid Cap and the BSE Small Cap closed on a negative note. Realty and Metal stocks were the biggest losers.
As regards global markets, Asian indices closed mixed. European indices have also opened in the red. The rupee was trading at Rs 64.23 to the dollar at the time of writing.
According to a leading financial daily, National Aluminium Company Ltd. (NALCO) is planning to raise its alumina exports by 40% to 1.4 million tonne this fiscal year. The fall in the rupee has helped Nalco to raise its exports. The overseas shipments of Nalco, India's largest exporter of alumina, could raise about USD $400 m based on current prices. Nalco plans to raise its alumina output by about 19% to 2.15 million tonne for the fiscal year ending March 2014. Its output of aluminium, produced by smelting alumina, would be about 300,000 tonne, out of which about 35-40% would be exported.
According to a leading financial daily, retail inflation for farm and rural workers has come down in July, even as prices of food items and cloth remained high. According to the data released by the Labour Bureau, the inflation based on food index of Consumer Price Index- Agriculture Labour (CPI-AL) and Consumer Price Index-Rural Labour (CPI-RL) stood at 13.84% and 13.80%, respectively. The all India retail inflation index for farm and rural workers in July increased by 11 points each to stand at 740 points and 741 points respectively. The rise in index varied from state to state. In case of farm workers, the index recorded an increase that varied between 4 to 18 points in various states. Karnataka with 822 points topped the index table, whereas Himachal Pradesh with the index level of 583 points was at the bottom.