Sensex tumbled by 1000 points joins meltdown in Asian markets

On Oct 11, 2018

NP NEWS NETWORK

Mumbai

The benchmark equity index Sensex tumbled more than 1,000 points on Thursday morning, joining the meltdown in Asian markets after Wall Street suffered its worst decline in eight months.

The 30-share benchmark Sensex lost more than 1,000 points during the session as most of the index heavyweights lost heavy ground.

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Earlier in the day, the Sensex shed as much as 3% or 1,037.36 points to 33,723.53 points while the Nifty dropped as much as 3.07% or 321.50 points to 10138.60.

“The US market went through a corrective phase, on doubts whether high valuation in select few stocks that drove the market higher was justified. Indian markets are now dealing with dual problems – their own macroeconomic worries, and now the global woes. I believe the weak sentiment will prevail for a while, “said Hemang Jani, senior vice-president and head of the advisory at Sharekhan.

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In the U.S., the Dow Jones Industrial Average (DJIA) lost over 3% while Nasdaq closed lower by more than 4% on Wednesday.

Back in India, the broader market breadth was extremely weak with nearly 1,600 stocks in the red as against around 400 gainers. Further, 125 stocks remained locked at their lower circuit on BSE.

At 10:30 a.m., the Sensex was down 820 points at 2.38% at 33,941.15. The broader Nifty was trading at 10,199.45, down 260.65 points or 2.49%.

Elsewhere in Asia, Hang Seng was down nearly 1,000 points while Nikkei was also lower by almost 900 points. The benchmark index of China also lost over 4%.

The Sensex and Nifty erased all the gains made in 2018. Indian markets have been seeing a sharp correction since last week due to surging crude oil prices, a weakening rupee and concerns over the default by IL&FS on loan payments.

Top laggards include SBI, Tata Steel, Infosys, Axis Bank, Bharti Airtel, Yes Bank, Maruti Suzuki, HUL, TCS, HDFC, ICICI Bank, Adani Ports, Wipro, Tata Motors, ITC, Coal India, Bajaj Auto, L&T, Sun Pharma IndusInd Bank and M&M, dropping up to 3.99%.