Sensex declines 273 points on macro concerns

The Sensex plunged 273 points while the NSE Nifty finished below 10,700 on Wednesday as firming crude oil prices and a weakening rupee hammered risk appetite amid an uncertain global environment.

The BSE oil and gas index was the worst performer among sectoral peers, sinking 3.81 per cent, after Brent crude oil rates crossed $76 a barrel on supply disruptions and US attempts to curb Iranian shipments.

The rupee hit one-and-a-half year lows against the US dollar intra-day amid persistent foreign capital outflows. The Sensex opened in the green and hit a high of 35,618, but soon turned lower on widespread selling. It ended at 35,217, down 272 points, or 0.77 per cent.

This is its lowest closing since June 6, when it had settled at 35,178.

The wider NSE Nifty touched a low of 10,652 before finishing at 10,671, showing a loss of 97.75 points or 0.91 per cent. Sentiment took another hit after the RBI, in its Financial Stability Report (FSR) on Tuesday, said the banking sector's NPA situation was likely to worsen further.

State-run lenders came under heavy selling pressure, with PNB, Bank of Baroda, SBI, Syndicate Bank, Oriental Bank of Commerce and Union Bank of India falling up to 6.61 per cent. The June month expiry in the derivatives segment on Thursday forced investors to adopt a cautious stance, brokers said. Foreign portfolio investors sold shares worth ~5.38 billion, while domestic institutional investors bought shares worth ~2.38 billion on Tuesday, according to provisional data.