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Sensex tumbles over 310 points, Nifty slips below 11,500-mark; Yes Bank, IndusInd Bank, Tata Steel among top losers

FP Staff

The Sensex plunged over 310 points in opening trade on Monday due to sell-offs mainly in financial, metal and auto stocks amid subdued global cues.

Likewise, the NSE gauge Nifty too dropped over 84 points to slip below the psychological 11,500-level.

Yes Bank, IndusInd Bank, Tata Steel, Sun Pharma, Vedanta and Tata Motors were among the top losers on the Sensex chart.

On the other hand, IT stocks€"HCL Tech, TCS, Infosys€"were the major gainers.

At 10:15 am, the BSE S&P Sensex was down by 300 points at 38,522 while the Nifty 50 slipped by 87 point to 11,425. At the National Stock Exchange, most sectoral indices were in the red except for FMCG and IT.

Opening on a flat note, the Sensex was gripped by volatility as the trade progressed and dived 310.80 points or 0.80 points to trade at 38,511.77 in early deals. While, the Nifty was down 84.05 points or 0.74 points to 11,427.55.

Analysts attributed the sluggish start for the Indian markets to subdued global cues.

Reliance Capital touched a 52-week low of Rs 26.70, declining 5 percent on 30 September after the company concluded the sell its stake in Reliance Nippon Life Asset Management.

Asian stocks unchanged

Asian stock markets, including China's, were little changed on Monday, shrugging off news that the US administration is considering delisting Chinese companies from US stock exchanges, Reuters report said.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.05 percent while China's Shanghai stock index slipped 0.2 percent, barely responding to any of the concerns around the latest Sino-US tensions that caused the Nasdaq index to fall more than 1 percent on Friday.

Risk assets took a hit in US trade on Friday following news the Trump administration is considering radical new financial pressure tactics on Beijing, including the possibility of delisting Chinese companies from US stock exchanges. The report knocked Chinese shares listed on US exchanges, with Alibaba Group Holding falling 5.15 percent and JD.com 5.9 percent on Friday.

Worries such an escalation would hurt Japan the most however weighed on the Nikkei, which shed 0.45 percent. US stock futures gained 0.44%, paring most of Friday's 0.53percent fall in the index.

Trading in Chinese markets was quiet ahead of a long break. Chinese share markets will trade only on Monday this week ahead of the country's National Day holiday, which runs until 7 October.

There were mixed signals from China's manufacturing surveys on Monday, which showed sustained weakness in exports and surprising improvement in domestic consumption indicators, and a Chinese central bank statement briefly hinting at plans for more stimulative policies.

China's yuan was little moved at 7.1192 yuan per dollar, while the offshore yuan rallied a bit from Friday's three-week low of 7.1520. The delisting of Chinese companies from US stock exchanges was part of a broader effort to limit US investment in Chinese companies, two sources briefed on the matter told Reuters. The rupee opened marginally higher against the US dollar in early deals on Monday.

Last week, the government continued with its measures to prop up consumer demand across sectors and bring the economy on track.

The government has been holding a series of consultations with various stakeholders to brainstorm on measures needed to accelerate economic growth, which dipped to a six-year low of 5 percent in the first quarter of 2019-20.

Finance Minister Nirmala Sitharaman on Friday said various ministries have cleared Rs 40,000 crore out of Rs 60,000 crore due mainly to MSMEs for supply of goods and services, and the remaining amount not locked in litigation too will be paid by the first week of next month.

The government has also set 15 October as the deadline for central PSUs to clear overdue payments to vendors and exhorted them to front-load capital expenditure as it looks to lift economic growth from six-year low.

On Friday, foreign portfolio investors sold shares worth a net of Rs 213.60 crore, exchange data showed.

Also See: Sensex sinks 642 points as crude oil woes persist, Nifty falls 186 points; Hero MotoCorp, Tata Motors among top losers

Sensex rises 83 points to close at 36,564, Nifty up 23 points; Tata Steel, Vedanta, SBI among top gainers

Sensex tanks 470 points on weak macro data, global cues, Nifty ends at seven-month low; Yes Bank top loser

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