SENSEX CRASHES OVER 750 PTS

Millennium Post - - Front Page -

MUM­BAI: The BSE Sensex slumped over 750 points to end at a six-month low and NSE Nifty ended be­low the 10,300 mark Thurs­day as global in­dices wit­nessed across-the-board losses af­ter in­vestor sentiment was hit by heavy sell-off in world mar­kets.

The 30-share in­dex, which com­menced with a gap down open­ing, cracked over 1,000 points, breach­ing the 34,000mark and hit a low of 33,723.53, be­fore stag­ing a par­tial re­cov­ery to touch a high of 34,325.09 in af­ter­noon trade.

The gauge fi­nally ended 759.74 points, or 2.19 per cent, lower at 34,001.15. This is the low­est clos­ing since April 11.

It had gained 461.42 points Wed­nes­day.

Sim­i­larly, the NSE Nifty set­tled at 10,234.65, down 225.45 points, or 2.16 per cent. It moved be­tween 10,138.60 and 10,335.95 in day trade.

“This sell-off is part of the global sell-off trig­gered by the sharp cut in the mother mar­ket US,” said VK Vi­jayaku­mar, Chief In­vest­ment Strate­gist at Geo­jit Fi­nan­cial Ser­vices.

This is lead­ing to cap­i­tal out­flows from emerg­ing mar­kets (EMS) like In­dia. Apart from the ris­ing bond yield in the US and EM cur­rency woes, there are global trade skir­mishes im­pact­ing the sentiment, he added.

“While most of the ear­lier fall could be at­trib­uted largely to do­mes­tic fac­tors, the rea­son for Thurs­day’s fall is clearly global with the US mar­kets fall­ing sharply af­ter Pres­i­dent Trump’s acer­bic com­ments against the Fed­eral Re­serve and the con­se­quent sharp fall wit­nessed in all the ma­jor Asian mar­kets,” said Dheeraj Singh, Head of In­vest­ments - Taurus AMC.

In an un­prece­dented crit­i­cism by a serv­ing US Pres­i­dent, Trump said the Fed­eral Re­serve had gone crazy af­ter the Dow Jones In­dus­trial Aver­age in New York tum­bled by over 800 points Wed­nes­day, the big­gest de­cline in more than seven months.

Among the Sensex pack, state-run len­der SBI was the big­gest loser, plung­ing by 5.74 per cent, fol­lowed by Tata Steel 4.60 per cent.

Stocks of IT bell­wether TCS fell 3.10 per cent ahead of Septem­ber quar­ter earn­ings to be re­leased later Thurs­day.

Other lag­gards in­cluded Vedanta, M&M, In­fosys, Adani Ports, Bharti Air­tel, Tata Mo­tors, HDFC, In­dusind Bank, Sun Pharma, Ba­jaj Auto, ICICI Bank, L&T, Ko­tak Bank, Maruti Suzuki, Hero Mo­toCorp, Coal In­dia and ITC, fall­ing up to 4.45 per cent.

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