BSE Sensex tanks 484 pts on China market rout

The BSE Sensex and Nifty fell over 1.5 per cent on Wednesday as China's stock market rout rattled investors who dumped blue-chips, including bank and commodity stocks.

While the 30-share Sensex shed 483.97 points to 27,987.72, the 50-share Nifty closed 147.75 points down at 8,363.05.

According to market experts, in an unprecedented move, around 1,400 companies filed for a trading halt in Chinese stock markets to prevent further losses.

Within ten minutes of trading, almost 1,000 shares trading in both Chinese markets were trading down more than 10 per cent and their shares were suspended for trading.

The move marks the failure of earlier attempts by the Chinese market regulator to stabilise the markets that were introduced last weekend.

Tata Motors shares declined 6.17 per cent on worries over China's economic slowdown could hurt sales of Jaguar Land Rover. Among the Sensex stocks, Vedanta, Tata Motors, Hindalco, Tata Steel and HDFC declined 7.85 per cent, 6.17 per cent, 5.13 per cent, 4.72 per cent and 3.54 per cent, respectively, and stood at the bottom of the performance chart.

On the other hand, Hindustan Unilever inched up marginally by 0.04 per cent and remained the only gainer among the 30 companies in the benchmark index.

Among the sectoral indices on the Bombay Stock Exchange, the Metal index tanked the most - 3.89 per cent to 8,833.51. It was followed by BSE Auto index (down 2.24 per cent) and BSE Realty index ( down 1.78 per cent). Rest all other indices also ended in red.

The overall market breadth remained weak on the BSE as 948 stocks ended with gains while 1,791 closed in loss. On the global front, Asian peer markets Hang Seng, Shanghai and Nikkei closed down by 5.84 per cent, 5.90 per cent and 3.14 per cent, respectively.

"Markets worldwide corrected on the back of concerns about a probable Greek exit and new renewed fears over Chinese markets," Hiren Dhakan, associate fund manager, Bonanza Portfolio, said.

Gaurav Jain, director, Hem Securities, said: "Global sell-off across all the asset classes triggers sharp fall at domestic bourses. Selling pressure  was witnessed in crude and metals on China worries. Investors seem to unwind their position ahead of key outcomes on Greece crisis, US FOMC minutes which are scheduled to be released later on Wednesday."