Markets melt in global rout
The BSE Sensex slumped over 750 points to close at a sixmonth low and NSE Nifty ended below the 10,300 mark on Thursday as global indices witnessed...
Mumbai: The BSE Sensex slumped over 750 points to close at a six-month low and NSE Nifty ended below the 10,300 mark on Thursday as global indices witnessed across-the-board losses after investor sentiment was hit by heavy sell-off in world markets.
The 30-share index, which commenced with a gap down opening, cracked over 1,000 points, breaching the 34,000-mark and hit a low of 33,723.53, before staging a partial recovery to touch a high of 34,325.09 in afternoon trade.
The gauge finally ended 759.74 points, or 2.19 per cent, lower at 34,001.15. This is the lowest closing since April 11. It had gained 461.42 points Wednesday. Similarly, the NSE Nifty settled at 10,234.65, down 225.45 points, or 2.16 per cent. It moved between 10,138.60 and 10,335.95 in day trade.
"This sell-off is part of the global sell-off triggered by the sharp cut in the mother market US," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. This is leading to capital outflows from emerging markets (EMs) like India. Apart from the rising bond yield in the US and EM currency woes, there are global trade skirmishes impacting the sentiment, he added. Among the Sensex pack, state-run lender SBI was the biggest loser, plunging by 5.74 per cent, followed by Tata Steel 4.60 per cent.
Airline stocks continued their rising streak for the second day after the government Wednesday cut excise duty on jet fuel to 11 per cent to give relief to the aviation industry. The broader market also took a beating with mid-cap and small-cap indices falling up to 2.81 per cent. Among sectoral indices, the BSE metal index emerged the worst performer by falling 3.77 per cent. While, oil and gas index rose 2.28 per cent.
Overseas, other Asian stocks ended lower after Wall Street suffered its worst drubbing in eight months. In the forex market, the rupee, after hitting yet another record low of 74.50 against the dollar in early deals, turned positive in late afternoon trade and was quoting 24 paise higher at 74.