Sensex plunges over 600 points, Nifty goes below 11000 as auto and telecom stocks drag
New Delhi | Jagran Business Desk: Benchmark Sensex and NSE Nifty extended their losses on Tuesday led by a decline in banking and automobile stocks HDFC Bank, ICICI Bank, Infosys, TCS, Larsen & Turbo and ITC. Investors remained cautious as there was no announcement about government fiscal stimulus package ahead of key inflation data.
At 3:33 pm, BSE Sensex lost 623 points while NSE Nifty shredded below 10,950. Amid a strong selloff, only three shares in Sensex were trading higher while 42 shares were trading lower in Nifty.
The downfall in domestic markets was in line in broader Asia, as fears mount on drawn-out Sino-US trade war. Moreover, Protests in Hong Kong and Argentina's Peso currency forced the investors into safe havens.
Meanwhile, Rupee depreciated to USD breaching 71 for the first time in the last six months.
All sector gauges compiled by NSE were trading lower, led by Auto Index, which fell 3.8 per cent after vehicle sales fell for the straight ninth month in July, said an auto industry body on Tuesday. The automobile sector is facing a deepening crisis which has led to job cuts.
Passenger vehicle sales fell 30.9 per cent to 200, 790 units in July as per data released by Society of Automobile Manufacturers (SIAM). Commercial sales were 25.7 per cent down to 56,866 units.
Nifty Bank, FMCG, Financial Services, IT, PSU and Prive Bank sector gauges lost over 1.5 per cent. Meanwhile, small and mid-cap shares were also witnessing selling pressure as Smallcap 100 plunged 0.9 per cent and Midcap 100 dropped 1.5 per cent.
Major laggards in NSE 50 include Yes Bank whose stocks fell 7.7 per cent to Rs 75.80. Others stocks such as Mahindra & Mahindra, Bharti Airtel, HDFC, Grasim Industries, Eicher Motors, ITC, Maruti Suzuki, NTPC and Tech Mahindra lost between 3.2 per cent to 4.8 per cent.
On the flipside, Reliance Industries shares saw their biggest intraday rise in more than 10 years on Tuesday. Its shares rose as much as 12 per cent to Rs 1302.
Other gainers were Indiabulls Housing Finance, Sun Pharma, GAIL India, Hindalco, Zee Entertainment and Titan.
Posted By: James Kuanal