Sensex crashes 551 pts on P-Note concerns; at over 5 week low
Mumbai: Market again took a beating today, with the benchmark BSE Sensex crashing over 551 points to 27,561.38, its weakest closing in over five weeks, on concerns that stricter norms for participatory notes may hit foreign investments and a major slump in Chinese stocks.
The NSE Nifty also dipped below the 8,400-level.
Market slumped amid fears that the government may accept Supreme Court-appointed Special Investigation Team (SIT) recommendations of stricter norms for participatory notes (P-notes) on markets, equity brokers said.
However, Finance Minister Arun Jaitley’s statement during the market hours today that the government will not take any “knee-jerk” reaction that will adversely impact country’s investment climate failed to lift the mood.
“No such step would be taken which could adversely impact investment sentiment in the country,” he said.
A sell-off in other Asian markets with over 8 per cent plunge in Shanghai on worries that the Chinese economy is heading for a sharp slowdown added to the rout.
The 30-share index commenced lower and dipped below the 28,000-mark to touch a low of 27,529.57 before ending at 27,561.38, fall of 550.93 points or 1.96 per cent.
Today’s closing was the lowest level since June 19, when the index had closed at 27,316.17. Also, it is the second biggest single-day fall since 660.61 points plunge on June 2.
The gauge has now lost 943.55 points in last three days.
The broader NSE Nifty also succumbed to all-round selling and slipped below the 8,400-mark to settle the session 160.55 points or 1.88 per cent down at 8,361.00.
In broader markets, mid-cap and small-cap indices closed lower by 1.38 per cent and 1.07 per cent, respectively.
Tata steel was the top Sensex loser, tumbling 5.17 per cent, followed by Hero MotoCorp 4.84 per cent.
Of 30-share Sensex pack, 29 fell, while only Bajaj Auto bucked the trend and rose 0.41 per cent.
Sectorally, BSE metal index fell the most, followed by capital goods, metal, banking, power, realty and auto.
Among other Asian markets, Shanghai Composite dived 8.48 per cent, Japan’s Nikkei fell 0.95 per cent and Hong Kong’s Hang Seng 3.09 per cent. European stocks slid in early trade.