Stock markets around the world continued to tumble as investors doubt the ability of the euro zone and American economies to grow. In New York, the Dow Jones index closed down 3.5 per cent. Leading European markets fell about 5 per cent with London suffering its biggest one day fall for two years. Indonesian stocks, the region's best performing stock index this year, plunged almost 9 percent as investors bailed. Falling in line with tumbling global markets, the Sensex at the Bombay Stock Exchange closed with a huge loss of 704 points, or 4.1 percent, at 16,361, on Thursday. The meltdown in global stock markets had its impact on the Indian rupee also which plunged by 124 paise to close at nearly two-and-a half years low of 49 rupees 58 paise against the US dollar.