Sensex sinks 760 pts on global rout, weak rupee

NEW DELHI: Equity markets on Thursday witnessed a bloodbath with the benchmark BSE Sensex crashing over 750 points to finish just a tad above the 34,000-mark. The 30-share BSE index closed 760 points lower at 34,001, while the 50-share NSE index ended 225 points down at 10,235.

Both the BSE and NSE indices lost more than 2 per cent each.

On 30-share BSE index, just three stocks — ONGC, Yes Bank and Hindustan Unilever — managed to gain and the rest of all traded in red losing as much as 5.74 per cent.

On NSE, sub indices Nifty PSU Bank and Nifty Metal cracked the most, losing as much as 5.16 per cent.

In the early trade today, markets nosedived more than 1,000 points amid the rupee touching new lows and global sell-off. Both the factors continued to keep the equity indices under pressure in the late-afternoon deals too.

“What happened in US yesterday had a ripple effect here today. The IMF has downgraded global growth rate, US growth rate for next year, both these had impact on markets,” a finance ministry official said.

“There is nothing to worry about the current market condition. Indian equity and rupee markets are impacted by external factors. Inflation is well within limits and the fundamentals of Indian economy remain strong,” the official added.

A sharp fall in domestic equity markets was the main driver for the rupee’s extended decline, as it heightened concerns about further foreign portfolio outflows.

Confidence has ebbed in the markets in recent weeks. A liquidity scare erupted last month after a series of debt defaults by Infrastructure Leasing & Financial Services (IL&FS) sparked redemption pressure at other shadow banking companies.

(With inputs from PTI)
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