MUMBAI – Market benchmark BSE Sensex Tuesday crashed 509 points to close at more than one-month low of 37,413.13 due to heavy selling in FMCG, metal, auto and financial stocks amid growing concerns over intensifying global trade war.
The 30-share index tanked more than 1 per cent for the second day in a row after the rupee slid to a new lifetime low of 72.73 in afternoon trade.
Stock markets had opened higher nut bears regained the control soon to wipe out initial gains as crude oil prices rebounded in Asian trade.
The BSE barometer closed the day with a hefty fall of 509.04 points or 1.34 per cent at 37,413.13. This is the weakest closing since August 2 when it had ended at 37,165.16. It had lost 467.65 points in the previous day.
The 50-share NSE Nifty cracked below the 11,300-mark by falling 150.60 points or 1.32 per cent at 11,287.50. Intra-day, it shuttled between 11,479.40 and 11,274.
Surging crude oil prices, rupee plunging to record lows and widening trade deficit, besides negative global leads were major factors that dampened sentiments on the domestic bourses, a broker said.
In Asian trade, international benchmark Brent crude again went past the $78 to trade at $78.52 a barrel, by rising 1.30 per cent amid looming US sanction against Iran’s petroleum industry.
Investors were cautious as trade war concerns between the US and China escalated, brokers said.
Moreover, expectations of a US interest rate hike this month by the Federal Reserve that may strengthen the dollar and accelerate sell-off by foreign funds in emerging markets too negatively impacted sentiments, brokers said.
Globally, Hong Kong’s Hang Seng ended down 0.71 per cent and China’s Shanghai Composite Index shed 0.18 per cent. In the eurozone, Frankfurt’s DAX fell 0.53 per cent and Paris down 0.19 per cent in their late morning trade. London’s FTSE too fell 0.57 per cent.
