Rout in markets again; Sensex loses above 500 points, Nifty ends below 11,000

| Updated: Sep 24, 2018, 16:03 IST

Highlights

  • Sensex lost 536.58 points to close at 36,305.02 while Nifty slipped 168.20 points to crash decisively below the 11,000-mark
  • Experts suggest financial sectors are dragging the markets and it has a domino effect on sectors such as real estate and autos
NEW DELHI: The massive sell-off in the equity markets refused to die down on Monday as Sensex and Nifty lost to the tune of 1.50 per cent each, cracking under key levels.

The 30-share BSE Sensex lost 536.58 points to close at 36,305.02 while the broader 50-share NSE Nifty slipped 168.20 points to crash decisively below the 11,000-mark.

Investors, who were wary of the flash crash on Friday which saw a 1,500-point swing on the BSE, started trading on a volatile note in the morning. By mid-day however, the Street was deep in the red zone and could not recover.

Earlier, before the markets opened, finance minister Arun Jaitley sought to soothe the volatility in the markets by assuring the government will ensure liquidity in non-banking finance companies (NBFCs) and mutual funds.


On Friday, stocks, forex and bonds markets turned volatile on worries over liquidity concerns as a series of defaults from Infrastructure Leasing & Financial Services (IL&FS) spooked investors.

“There are liquidity concerns ... financial stocks led the rally and now they are dragging the markets and it has a domino effect on sectors such as real estate and autos,” said AK Prabhakar, head of research at IDBI Capital.

Echoing the 'domino effect' referred to by Prabhakar, the Nifty Realty and Nifty Auto sub-indices lost 5.50 per cent and 3.70 per cent, respectively. The financial service and PSU Bank sub-indices also lost in excess of 3 per cent.

Nifty IT was the only sector which finished in the green, with IT behemoths Infosys and TCS making handsome gains.

Brokers said market sentiment remained weak in the absence of any encouraging factor and fresh weakness in the rupee, coupled with rising global crude oil prices, which again went past the $79 per barrel mark.

The rupee depreciated 29 paise to 72.49 against the US dollar at the interbank forex market.

Global cues were also hit as US and China imposed fresh tariffs on each other's imports and called off trade talks.






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