Mumbai: The domestic equity markets fell for the fifth consecutive day amidst a rout in global stocks after a better than expected wage growth data released in the US over the weekend stoked fears about sooner than expected rate hike by the US Federal Reserve. The BSE Sensex was down by 309.59 points or 0.88 per cent at 34,757.16 while the NSE Nifty fell 94.10 points or 0.87 per cent to close at 10,666.50 on closing bell yesterday. Here is how it all started.
The key Indian equity indices provisionally closed Tuesday's trade in the negative territory, paring some losses to recover from their day's lows. Nifty too had lost more than 150 points.
The benchmark BSE index was 0.86 percent lower at 34,766.63, after dropping as much as 1.56 percent.
Major loser were Tata Motors 5.19 per cent, Axis Bank 4.78 per cent, Tatamtrdvr 4.16 per cent, Yes Bank 4.08 per cent and HUL 3.65 per cent.
U.S. stocks tumbled yesterday, as interest rates headed higher amid concerns of returning inflation. "We aren't living in an island so there will be ripple effect of what is happening in world on Indian stock markets.Otherwise the sensex & NSE would have come down on 1st day itself", he added.
The heavy sell-off comes after months of surges fuelled by corporate earnings, global outlook and optimism over the USA economy.
In domestic markets, caution ahead of RBI monetary policy meeting which begins later in the day and the rupee depreciating by 29 paise to 64.36 against the dollar too dampened the sentiment, brokers said.
Strong selling pressure dragged down all the Sensex and the Nifty components. In the last three sessions since the Budget was announced, which imposed a 10% tax on annual LTCG of more than Rs 1 lakh, the sensex has lost about 1,200 points (3.3%).
The benchmark S&P 500 slumped 4.1 percent and the Dow 4.6 percent, suffering their biggest percentage drops since August 2011 as a long-awaited pullback from record highs deepened. Both Nifty and Sensex fell almost 3.5%, their biggest fall since August 2015. Among the Asian markets, Nikkei in Japan closed 2.6% lower while in late session FTSE in United Kingdom was down over 1%. Australian shares dropped 3.0 percent to their lowest level since October while South Korean shares dropped 2.0 percent.