Indian stock market was down by over 500 points on Friday. The market decline has been mainly attributed to the economic troubles India is going through and the falling currency. The current account deficit is at alarming levels and there is a chance that India could face Balance of payment crisis as the incoming foreign funds have dried down. NSE Nifty was down by nearly 3% at 5576. BSE Sensex was down by 502 points at 18866 at 11.50 am IST.

Finance Minister P Chidambaram and RBI governor have tried many options but the slide of India currency hasn’t stopped. With Indian currency touching 62 level compared to USD, the investor sentiment has been hit badly. The import bill will surely rise and the petroleum minister has already hinted price rise in Diesel and Petrol. The rise in price of Diesel and Petrol will further trigger inflation.

Among major losers in today’s trade were banking stocks, both from private and public sector. Axis Bank was down by 6 percent after MSCI decided to exclude the bank from large cap and standard indices. Titan was also down by 12% as the company will face tough time due to government’s decision of curbing gold imports and increasing gold duty.

Among other major losers were Bank of Baroda, SBI, Jaiprakash Associates, BHEL, DLF, Reliance Infra, IDFC, Sesa Goa, HDFC, PNB and Maruti Suzuki. Indian markets are expected to close lower today.