Sensex crashes 770 pts Rs tumbles to 9mth low

first_imgMumbai: Benchmark stock indices on Tuesday crashed over 2 per cent, and the rupee tumbled 97 paise to a level not seen in over nine months as unpleasant news continued to flow in for the Indian economy. The BSE Sensex crashed about 770 points, and the NSE Nifty dived over 225 points after investors indulged in panic selloffs as dismal GDP print, weak core sector growth and disappointing auto sale numbers pointed to deepening economic crisis in the country. Also Read – India gets first tranche of Swiss bank a/c detailsThe benchmark indices also saw their biggest intra-day plunge in nearly 11 months. Large selloffs in equities saw investor wealth eroding by Rs 2.55 lakh crore. Indian markets, after an extended weekend, opened on Tuesday sharply lower reacting to the country’s worsening macro-economic situation as well as weak global cues attributed to long-lasting US-China trade tiff. After plunging 867 points during the day, the 30-share index ended 769.88 points, or 2.06 per cent, lower at 36,562.91. The broader Nifty too sank 225.35 points, or 2.04 per cent, to settle at 10,797.90. Also Read – Tourists to be allowed in J&K from ThursdayTop losers in the Sensex pack included ICICI Bank, Tata Steel, Vedanta, HDFC IndusInd Bank, Tata Motors, RIL and ONGC – falling up to 4.45 per cent. Only two IT stocks – TechM, HCL Tech – ended with mild gains, tracking weaker rupee. The Indian rupee plunged 97 paise to close at 72.39 per US dollar on Tuesday. All sectoral indices ended in the red, with BSE metal, energy, consumer durables, telecom, bankex, finance, oil and gas, realty and capital goods indices settled 3.23 per cent lower. Broader BSE midcap and smallcap indices too closed up to 1.65 per cent lower. Public sector bank stocks also ended in significantly lower after the government announced the merger of 10 state-run lenders into four. It gives a positive signal to investors that the government is not just focusing on recapitalising the bank, but also in improving the governance in the public sector banks, experts said. However, the merger will still be painful as a result of the geographic and cultural diversity of the merging entities, they added. Despite several efforts by the government to boost the economy, market sentiment took a hit on account of weak macroeconomic data releases and a double-digit decline in auto sales in August as the sector continued to reel under one of the worst slowdowns in its history.last_img

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