The rupee hit a fresh all-time low against the US dollar this morning amid heavy demand for the greenback, mounting global risk aversion and India's worsening growth outlook.
However, speculative reports that the RBI has asked public sector oil companies to restrict purchases of dollars to four state-run banks lifted the local currency in intraday trade.
The rupee lost some of the steam after senior officials from the RBI and state-run oil companies denied the reports.
The rupee closed the day at 56.11 per dollar after touching a record low of 56.52 and a day's high of 55.73. It had opened at 56.4950 as against the previous close of 56.2325.
The undertone was cautious after the release of disappointing Q4 GDP data.
The BSE Sensex closed at 16,218, down 93 points or ~0.6% from the last close. It earlier touched a day’s low of 16,086 and a day’s high of 16,277. It opened at 16,224.
The NSE Nifty ended at 4,924, down 26 points or 0.5% compared to the previous close. It earlier hit a day’s low of 4,883 and a day’s high of 4,949. It opened at 4,896.
Meanwhile, India's infrastructure sector growth declined to 2.2% in April 2012 versus 4.2% in the same month a year earlier, the Government said today. Core sector growth stood at 2.2% in March of this year.
India's fiscal deficit during FY12 stood at 5.7% of gross domestic product (GDP) as against the Government's revised estimate of 5.9%, data released by the controller general of accounts (CGA) showed on Thursday.
Fiscal deficit was Rs. 5.09 trillion as against the revised estimate of Rs. 5.21 trillion, as per CGA data.