Sensex Wipes Out 2018 Gains, Nifty Inches To 10,000 Amid Global Rout

The selloff in Indian equities worsened after fresh concerns around the U.S.-China trade war and rising interest rates triggered S&P 500 Index’s worst drop in seven months.

The S&P BSE Sensex wiped out its yearly gains as the index dropped 2.5 percent in early trade.

Meanwhile, the Nifty slipped well below its key support level of 10,300. Non-banking financial companies—Indiabulls Housing Finance Ltd. and Bajaj Finserv Ltd.—contributed the most to the decline.

The next big support for the Nifty is at 10,000-mark, said Basant Maheshwari of Basant Maheshwari Wealth Advisers. “We believe that the damage has been done and the same is reflecting in the price. We don’t see any small-cap stocks becoming a large cap for now.”

The Nifty has corrected over 13 percent from its August-peak on macro concerns such as higher crude prices, weakening rupee and uncertainties in the financial sector after the default at Infrastructure Leasing & Financial Services Ltd.

“There will be more correction and another 2-3 percent will not bother anybody,” Ajay Shrivastava of Dimensions Consulting told BloombergQuint in a phone interview. “We will have more peaceful times ahead considering a broader view.”

Watch | N Jayakumar on market turmoil and what’s next for Indian equities