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Sensex closes at 34,195 down 561 points amid global sell-off

The Sensex fell 1275 points to 33,482 level intra day a day after it closed 309 points lower as Dalal Street gauged the impact of LTCG tax on equities amid lower Asian markets.

twitter-logo        Last Updated: February 6, 2018  | 17:02 IST
Sensex falls over 1000 points, Nifty down 315 points as US markets roiled

Stock markets today extended their losses for the sixth successive session, with the benchmark Sensex falling by another 561 points to close at a one-month low of 34,195.94 amid a meltdown in the world markets.

The start was distinctly weak as the markets went into a free-fall. The Sensex crashed by about 1,275 points to sink below the key 34,000-mark while the NSE Nifty plunged 390 points within minutes of opening.

After opening at 33,753.78, the BSE Sensex continued its slide to hit a low of 33,482.81 as selling gathered momentum in tandem with weak global leads. However, value-buying emerged at several counters during the late trading session. The benchmark finally ended at 34,195.94, down 561.22 points, or 1.61 per cent.

At 9:26 am, the Sensex was trading 991 points or 2.85% lower at 33,765. Nifty too came under intense selling pressure falling 279 points or 2.6% at 10,388 level.

The rupee plunged to its six-week low falling 29 paise to trade at 64.36 to the dollar. On Monday, the Indian currency closed flat at 64.07 against the US currency amid sharp losses in local equities.

Fears of higher interest rates and impact of rising inflation in the US led to the selloff in global markets. Potentially higher bond yields also dampened sentiments in US markets.

At home, investors were also wary of the outcome of the monetary policy review on Wednesday.

On Monday, auto major Tata Motors reported about a 13-fold rise in quarterly profit, driven by higher sales from its Jaguar Land Rover(JLR) business after a particularly weak quarter a year earlier.

Net profit for the quarter ended December 31 came in at Rs 1,199 crore versus Rs 937.7 crore in the same quarter a year earlier. YES Bank (4.07%) and Axis Bank (3.88%) were other major losers on Sensex. Market breadth was negative with 140 stocks rising against 1829 falling on the BSE.

The heavy sell-off comes after months of surges fuelled by corporate earnings, global outlook and optimism over the US economy.

In domestic markets, caution ahead of RBI monetary policy meeting which begins later in the day and the rupee depreciating by 29 paise to 64.36 against the dollar too dampened the sentiment, brokers said.

Strong selling pressure dragged down all the Sensex and the Nifty components.

Foreign institutional investors sold equities worth Rs 1,263.57 crore in yesterday's trade, as per provisional data.

The laggards include Tata Motors, Yes Bank, Axis Bank, SBI, Asian Paints,Tata Steel, Adani Ports, ICICI Bank, IndusInd Bank, HDFC Bank, Maruti Suzuki, L&T and Hero MotoCorp, plunged by up to 7.55 per cent.

Global markets

MSCI's broadest index of Asia-Pacific shares outside Japan slid 3.5 percent to a one-month low, which would be its biggest fall in more than a year and a half, a day after it had fallen 1.6 percent.

Japan's Nikkei tumbled as much as 5.6 percent while Taiwan shares lost 5.3 percent at one point. Australian shares dropped 3.0 percent to their lowest since October while South Korean shares fell 3.0 percent.

The rout came after US stocks plunged in highly volatile trading on Monday, with the Dow industrials falling nearly 1,600 points during the session, its biggest intraday decline in history, as investors grappled with rising bond yields and potentially higher inflation.

The benchmark S&P 500 slumped 4.1 percent and the Dow 4.6 percent, suffering their biggest percentage drops since August 2011 as a long-awaited pullback from record highs deepened.

(With inputs from agencies)


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