Sensex tanks 265 pts as Chinese data queer the pitch
Mumbai: The benchmark BSE Sensex plunged over 265 points and the NSE Nifty slipped below the 7,800-mark in early trade today as retail investors started off-loading their bets, tracking a global sell-off on weak Chinese factory data. Caution ahead of tomorrow's September expiry in the derivatives segment too weighed.
Falling for the third straight day, the 30-share barometer tanked 265.36 points, or 1.03 per cent, to 25,386.48. The gauge had lost 567.07 points in the previous two sessions.
All the sectoral indices, led by metal, capital goods, auto and bankex, were trading in the negative zone, with losses up to 1.48 per cent. The NSE index Nifty went below the crucial 7,800-level by falling 88.75 points, or 1.13 per cent, to 7,723.25.
Brokers said besides persistent capital outflows by foreign funds, a weak trend in Asia following an overnight heavy sell-off at US markets and a plunge in Chinese factory activity stoked fresh fears about the health of the world's second-largest economy and the global outlook, which soured mood here.
Hong Kong's Hang Seng fell 2.30 per cent while Shanghai Composite was down 1.46 per cent in early trade today. Financial markets in Japan remained closed through Wednesday for a public holiday. The US Dow Jones Industrial Average ended 1.09 per cent lower yesterday.