Sensex plunges 219 points

Index ends at five-week low of 10,007.34; rupee at 3-yr low.

Indian markets faltered today despite signals of stability coming in from Asian markets, and a slight easing in crude prices.

Technology majors Wipro and TCS led the losers, with a fall of around 5 per cent each within the first hour of trading, bringing the Sensex to a close just seven points above the 10,000 mark, down 2.15 per cent. The Sensex had gone below the 10,000 mark during the day.

The rupee also fell to a fresh three-year low of 47.04 per dollar on a weak stock market, and the dollar's increasing strength against the yen and other major global currencies. The Indian unit ended at 46.9850/9950 as exporters came in to sell dollars at the higher levels.

Finance Minister P Chidambaram said the rupee's movement was reflecting the demand and supply conditions. "What is important is to see the real effective exchange rate (REER). In terms of REER, the rupee is stable," he said.

The market sentiment was negative since the morning after data showed heavy FII sell-off during the past two days. Despite a strong opening on the blue-chips, with the Sensex up nearly 100 points above yesterday's close, most of the stocks remained in the red throughout the day, finally dragging the blue-chips down with them.

The 50-stock Nifty was down 2 per cent, while the BSE Mid-cap index was down 3 per cent, and the Small cap barometer slid by 3.5 per cent during the day.

Unlike the last two days, when FIIs were major sellers, offloading equity worth Rs 1,100 crore, the day saw buying activity by foreign institutions support selling.

While sale figures remained at more or less the same levels as the last two days, there was a strong pick-up in the buying activity, which was up 57.5 per cent over yesterday. However, FIIs remained net sellers to the tune of Rs 67 crore today.