Benchmark stock index BSE Sensex today recorded its worst single day fall of 538.12 points in 16 months to end day’s trade below 27,000 on sustained fund outflows which also pulled down the rupee to 13-month low of 63.53 against dollar.
Traders attributed the steep fall in financial markets to selloff in international bourses, triggered by crude oil crashing to fresh multi-year lows, weaker-than-estimated Chinese manufacturing data and a rate hike in Russia which all raised concerns over global economy.
Brent crude for January eased 22 cents to USD 60.84 per barrel, a level last seen since mid-2009.
Gold prices also declined amid a weak global trend due to concerns that Federal Reserve in its meeting (December 16-17) might move closer to raising rates. The metal was down by Rs 180 to Rs 27,200 per 10 grams in the National Capital.
Broader NSE Nifty also tanked by 1.85 per cent or 152 points to 8,067.60 at close.
“Disappointing domestic economic data and negative global factors, accelerated selling activity on the bourses” said Manaoj Choraria, adding that approaching year-end also forced foreign funds to trim their positions.
Industrial production contracting 4.2 per cent for October, its three-year low, and trade deficit widening to one-and-a-half year high of USD 16.86 billion for November cast aspersions on economic recovery, traders said.
The 30-share BSE Sensex, which had lost 511.54 points in the previous three sessions, slipped below the 27,000-mark to settle at 26,781.44, a steep 538.12 points, or 1.97 per cent lower than its last close.
This is the weakest closing for Sensex since October 29. Today’s fall is also the worst since September 3, 2013 when the BSE index tumbled by 651 points.
Metal, realty, FMCG, banking, healthcare, consumer durables, power, capital goods, auto and oil & gas counters were the worst hit counters.
Sesa Sterlite was the biggest loser among 30 Sensex stocks at 7.77 per cent. Dr Reddy’s tanked 6.32 per cent, Hindalco lost 5.67 per cent and SBI 4.66 per cent.
In the forex market, the rupee slumped to 13-month low of 63.53 against the dollar due to heavy demand for the US currency from importers and some banks amid falling oil prices fund outflows. The local currency suffered a loss of of 59 paise or 0.94 per cent, its worst single day loss in more than four months.
Foreign Portfolio Investors sold shares worth a net Rs 455.72 crore yesterday, as per provisional data.