The benchmark Sensex lost more than 600 points during the early trading session on Thursday as concerns escalated over riding crude prices and a depreciating rupee, which hit a new low on Thursday.
At 11:15, the 30-share Sensex was trading at 35,382, down 593 points. The broader Nifty was at 10,661.40, down 197 points or 1.81%.
The market breadth was extremely weak with more than 1,600 stocks in the red as against less than 600 gainers. The Sensex pack saw 24 declines with Hero Motocorp and TCS down more than 3%. Further, nearly 175 stocks hot their lower circuit during the morning session.
“Rising crude price, coupled with currency depreciation, has been the key macro concern for the market as it can make the task of fiscal management challenging amid rising bond yields,” said Motilal Oswal Financial Services in a note on Thursday.
“We also note that the ILFS debt default and concerns about liquidity tightening and potential funding cost impact have resulted in a significant correction in financials,” it added.
Early this week Brent crude had hit a four-year high of $86.74 per barrel.