Home Business Sensex Plunges Over 500 Points, Nifty Slides Below 15,550

Sensex Plunges Over 500 Points, Nifty Slides Below 15,550


Sensex Plunges Over 500 Points, Financials, Autos Lead Losses

Tata Motors, M&M, ICICI Bank, SBI and IndusInd Bank have lost 1-2 per cent each on BSE

The domestic stock markets opened weak, with the BSE Sensex plunging more than 500 points or 1 per cent, on the back of negative global cues. Asian markets are trading in the red across the board after comments by Federal Reserve on interest rates spooked Wall Street over the weekend. Federal Reserve official James Bullard had said the U.S. central bank might raise interest rates sooner than previously expected.

At 9:20 am, the BSE Sensex was trading at 51,981.75, lower by 380.55 points or 0.76 per cent and the NSE Nifty was at 15,574.45, down 112 points or 0.70 per cent. All the BSE sectoral indices were trading in the red, with the financial and auto indices taking the most hit.

In the broader markets, the BSE Midcap index and BSE Smallcap index were trading lower by 0.7 per cent and 0.3 per cent respectively.

Asian stocks dropped on Monday as investors mulled the implications of a surprise hawkish shift last week by the U.S. Federal Reserve, while the Treasury yield curve flattened further with 30-year yields dropping below 2 per cent.

Japan’s Nikkei led declines with a 3.3 per cent drop and dipped below 28,000 for the first time in a month, while MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1 per cent in early trading.

US stocks ended sharply lower on Friday, with the Dow and S&P 500 posting their worst weekly performances in months, in wake of the Federal Reserve official’s comments. The Dow Jones fell 1.58 per cent, the S&P 500 lost 1.31 per cent and Nasdaq Composite dropped 0.92 per cent,.

In corporate earnings, Oil India, Bharat Dynamics, Info Edge and Jaiprakash Associates will declare their Q4 numbers during the day.

Auto and financial stocks are receiving a hammering in early trading. In the auto space, In the auto space, Tata Motors and M&M have shed over 2 per cent each on the BSE. And in the financial space, ICICI Bank, SBI and IndusInd Bank have lost more than 1 per cent each.

The BSE market breadth is weak. Out of 2,691 stocks traded on the BSE, there are 1,485 declining stocks as against 1,104 advances.

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