Sensex crashed by 1275 pts

Marcus Newton
February 7, 2018

Indian stock markets monitors - Sensex and Nifty crashed as an impact of the US-based markets following the United States budget disclosures of change in concepts of investment and debts.

Among major losers on the Sensex, Tata Motors lost 5.5%, its biggest single-day decline since August 10, after its December quarter net profit lagged behind forecasts.

Overseas, European and Asian stocks tanked following a sharp sell-off on Wall Street.

India's benchmark equity index sank to a one-month low, erasing most of the year's gains that drove it to multiple records, amid a global equity rout sparked by concern that inflation will force interest rates higher. "With 10 per cent LTCG tax, I would say Indian markets have turned 10 per cent unattractive", he said.

Tata Steel was the only gainer on the BSE Sensex. "There was only minimal disruption on day 1", said Finance Secretary Hasmukh Adhia.

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The BSE MidCap Index slipped 1.33% and the BSE SmallCap Index dropped 1.92%.

Earlier on Monday, BSE Sensex closed lower by 309.59 points, or 0.88%, to 34,757.16, while the Nifty 50 fell 68.05 points, or 0.63%, to 10,692.55.

The rout in global equities deepened in Asia as inflation worries gripped financial markets, sending United States stock futures sinking further into the red after Wall Street suffered its biggest decline since 2011. "Just because something applies in global markets doesn't mean it has to happen in India too".

Vedanta, GAIL, SBI, HINDALCO, Cipla, ONGC were the top NIFTY50gainers, with the rise percentage ranging from 3% to 5%. The Sensex had slumped 839.91 points on Friday, which was attributed to global weakness and introduction of long-term capital gains, or LTCG, tax on stocks in Budget 2018.

Vinod Nair, head of research at Geojit Financial Services Ltd, said the global sell-off sparked by a spike in global bond yield created in a knee-jerk reaction in the domestic market. The Dow Jones Industrial Average recorded its biggest single session fall in almost seven years on Monday, losing 4.6%, or 1175 points.

Other reports by MaliBehiribAe

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