Sensex falls 275 pts, Nifty below 10,600 on global sell-off

The BSE benchmark Sensex extended losses for the second session on Wednesday by declining over 250 points on heavy selling in IT, teck, metal and auto stocks amid weak global cues. Besides, fresh foreign fund outflows further hurt trading sentiments.

However, crude oil’s fall to one-year low in the global market on excess supply concerns, capped the fall in the indices.

The 30-share index, after rising briefly to 35,494.25 at the outset, quickly slipped into the negative terrain in line with a weak trend at other Asian markets and touched a low of 35,112.49.

However, it pared early losses on emergence of buying after a higher opening of European shares. The index closed 274.71 points, or 0.77%, down at 35,199.80. The gauge had lost 300.37 points on Tuesday.

Also, the broader NSE Nifty, after shuttling between 10,562.35 and 10,671.30 points, finally settled 56.15 points, or 0.53% down at 10,600.05 points.

Sentiments took a hit after broader Asian markets weakened, following a renewed sell-off on Wall Street on Tuesday as energy shares dropped after crude oil prices plunged to a 13-month low amid weak earnings and US-China trade disputes, fuelling worries about economic growth, brokers said.

“Wednesday’s action accentuates the recent divergence we have witnessed between India and advanced economies. While the Nasdaq Composite is down 7.2% in the past month and the S&P 500 is down 4.6%, the Nifty50 is up 2.8% in the same time,” said Sunil Sharma, chief investment officer, Sanctum Wealth Management. During the day, midcaps rallied strongly while the Nifty ended lower. Separately, the action in state-run banks and financials also suggests that market fears around liquidity and credit rollovers are abating, he added.

Persistent fall in technology stocks globally, and rupee appreciating against the dollar in the past few days, are the key factors fuelling the negative sentiment in IT stocks, brokers said.

MUMBAI: