Sensex tanks 476 pts in early trade on weak global cues
Mumbai: The BSE Sensex nosedived by 476 points in early trade today due to sustained selling by foreign funds and retail investors after a global rout in stock markets over growth concerns.
The 30-share index tumbled 476.38 points, or 1.72 per cent, to 27,131.44 in early trade. The gauge had lost 323.82 points in the previous session.
The wide-based National Stock Exchange Nifty fell below 8,300-mark, dropping 135.30 points, or 1.62 per cent, to 8,237.45 points.
Of 50 Nifty scrips, 46 constituents were in the negative territory with losses of up to 4 per cent.
Among 30 Sensex scrips, 27 were in negative zone with Bharti Airtel falling the most by 5 per cent.
All the BSE sectoral indices, led by auto, capital goods and healthcare, were trading in negative with losses up to 2.56 per cent.
Bharti Airtel lost over 5 per cent, Tata Motors by 3.5 per cent, Hero Motors Corp by 3.4 per cent and Vedanta by 3 per cent in early trade.
ICICI Bank, HDFC, Larsen Toubro, State Bank of India and ITC too fell up to 3 per cent dragging the index down.
Sustained selling by funds amid weak trend on Asian bourses following overnight sell-off in Europe and US markets as concerns have mounted that China’s slowdown would drag on global growth, brokers said.
Besides, the depreciating rupee which fell sharply by 27 to trade at two-year low of 65.81 too weighed on sentiments, they said.
Among Asian markets, Hong Kong’s Hang Seng index was down by 2.05 per cent and Japan’s Nikkei index shed 2.10 per cent in the morning trade.
Shanghai Composite index too fell 2.47 per cent on concerns over the economy and the possible removal of government support.
The US Dow Jones Industrial Average ended 2.06 per cent lower in yesterday’s trade.