A day of recovery on Wednesday seemed short-lived for India's benchmark indices. After staging a strong comeback on Wednesday, the Sensex crashed more than 1,000 points and Nifty was trading below 10,200 in early morning trade on Thursday after after Wall Street suffered its worst fall in eight months.
All of the Asian share markets were trading in red triggered by global sell-offs. A plunging rupee added to the pressure on Indian markets on Thursday.
The BSE Sensex plunged 1,037 points to 33,723.53 and the Nifty hit 10,138.60, about 321 points below its previous close.
The rupee on Thursday weakened by 24 paise to hit another low of 74.45 against the US dollar on strong demand for the American currency from importers amid unabated foreign fund outflows and sharp losses in the domestic equity market.
At the Interbank Foreign Exchange (forex) market, the domestic currency opened weak at 74.37 and slipped further to quote at an all-time low of 74.45, depreciating 24 paise against the US dollar in the early trade.
Forex dealers said besides strong demand for the American currency from importers, fears over the rising fiscal deficit and capital outflows weighed on the domestic currency.
(With inputs from PTI)