Indian markets today plunged to over one-month lows with benchmark Sensex tumbling 322.39 points to end at 27,797.01 on losses in power, metal and capital goods shares amid a sell-off in China and other global markets.

The NSE Nifty tanked 97.55 points to end below 8,400-mark at 8,340.70 as stocks fell for the third straight session.

Fall of global crude prices to five-year lows failed to lift the global sentiment as Chinese stocks dropped over 5 per cent on tighter lending norms and over 1 per cent drop in European indices, said traders.

The BSE 30-share Sensex remained in negative terrain for the major part of the session on sustained selling pressure. It moved between 27,763.82 and 28,157.53 range, before ending with a sharp loss of 322.39 points, or 1.15 per cent, at 27,797.01. This is its weakest close since October 30.

In the previous two sessions, Sensex shed 443.42 points.

The overall market breadth was negative as about 900 stocks rose while over 2,000 scrips fell.

“Sell-offs seen in Asian markets…impacted market sentiments for the day. Brent crude was seen dropping to its fresh 5-year lows, below USD 66 a barrel,” said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.

Experts said data showing current account deficit widened to USD 10.1 billion, or 2.1 per cent of GDP, in July-September quarter of this fiscal, raised concerns at a time when markets are pricing are strong recovery of the Indian economy.

Sesa Sterlite shares emerged the biggest loser among Sensex components by tumbling over 5 per cent. Shares of state-run ONGC plunged 4.29 per cent.

Other notable laggards include Tata Power, Bharti Airtel, NTPC, Tata Steel, Hindalco, BHEL, L&T, Tata Motors, Wipro, SBI, Cipla, Maruti Suzuki, Axis Bank and ICICI Bank.

Almost all the major Asian stock markets fell after Chinese market tumbled 5.43 per cent, the most since 2009. Indices in Hong Kong and Japan were among the worst-hit.

Sectorally, BSE Power index suffered the most by losing 2.75 per cent, followed by Metal index (2.71 per cent), Capital Goods (2.29 per cent) and Consumer Durables (2.11 per cent) among others. Selling activity in small and midcap also gathered momentum with BSE Smallcap falling 1.59 per cent and Midcap index down 1.57 per cent.

Meanwhile, Foreign Portfolio Investors (FPIs) bought shares worth net Rs 4,984.60 crore yesterday.

Shrikant Chouhan, Head- Technical Research, Kotak Securities:
Today, our markets opened at unchanged levels but unexpected steep weakness in Chinese and other Asian markets had triggered further bearish sentiment in the market. In fact in the absence or delay in positive news flows on the reform side is making impatient to medium term and long term investors. Technically we are of the view that unless and until the market is not approaching to major supports buying may not emerge but it’s a normal correction and investors should use it as an opportunity to buy and traders can take contra view of buying around major supports. In fact, today’s closing is very close to 1st major support, which is around 8300/27700. In case if it fails to sustain above 8300/27700 then the fall may extend up to 8200/27350. However, we are of the view that one should start investing into frontline stocks or index heavy weights with a medium term view (2 to 3months).  We like PSU banks, auto ancillary and pharmaceutical stocks with a medium term view.