The shadows of the economic slowdown are lengthening every day. On Monday, the rupee declined against the dollar, the markets crashed, and the export figures showed another decline.

Rupee down: Bad news on the economic front haunted the rupee as it closed at an all-time-low of Rs 51.95 against the US dollar. Bankers believe the Indian currency will be under constant pressure this week. "It could weaken to 52.50-52.70 levels as global uncertainties and weakness in the local stock market are impacting the rupee," said RVS Shridhar, head of markets at Axis Bank.

Exports decline: After Friday's disappointing economic growth numbers, a slowdown in exports was more or less expected. Exports contracted by 15.9% in January from the same month last year after falling just 1.1% in December. Imports also declined 18.2% in January due to falling crude oil prices, but non-oil imports also fell, suggesting slower investment activity.

"While exports may remain weak in the next two quarters as external demand remains subdued, we expect imports to fall faster due to falling commodity prices and the slump in investment demand," says Sonal Varma, economist at Nomura Securities.

STOCKS DIVE: The BSE Sensex tumbled 284.53 points, or 3.2%, with banking, IT, capital goods and metal stocks facing the brunt of investor fury on Monday.

Heavyweight Reliance Industries (RIL) was down after its board approved a swap ratio for merger of Reliance Petroleum (RPL) with the company, with the merger ratio being more favourable to RPL.

Team DNA/ DNA-Daily News & Analysis Source: 3D Syndication