Sensex crashes 587 pts to over 1-year low on slowing growth

Mumbai, September 1

Indian market again lost ground on Tuesday as the benchmark BSE Sensex plummeted by 587 points to close at over one-year low of 25,696.44 on intensified selling triggered by weak domestic and global macroeconomic data.

A government data released on Monday showed domestic growth had slowed down to 7 per cent in the June quarter from 7.5 per cent in the previous quarter, while a private survey on Tuesday showed that China factory output shrank to a three-year low.

Consequently, NSE Nifty also slipped below the 7,800-mark by tumbling 185.45 points or 2.33 per cent at 7,785.85.

The market witnessed all-round heavy selling in banking, metal, realty, capital goods, PSU, auto, consumer durables, oil&gas, power, FMCG, healthcare and IT stocks.

The concerns of a Chinese economy and a possible rate hike from US Fed kept the markets around the globe under pressure.

Shanghai Composite dived 1.23 per cent after China's statistics bureau said its Purchasing Managers' Index (PMI) of manufacturing activity came in at 49.7 last month, its lowest since August 2012.

The BSE 30-share gauge resumed with a downside gap and gradually moved southward to break 26,000-mark to a low of 25,579.88 before concluding at 25,696.44 — logging a steep fall of 586.65 points or 2.23 per cent.

"Sell-off was mainly triggered by the banks especially PSU banks on raising the concerns of pressure on their margins," said Gaurav Jain Director at Hem Securities.

Both BSE Sensex and NSE Nifty are at their lowest levels since August 2014.

As many as 29 out of 30 Sensex  scrips closed in the red, with the biggest loser Axis Bank falling by 5.24 per cent, followed by Hindalco 5.18 per cent.

Sun Pharma was lone gainer, rising 0.34 per cent.

In tandem with overall trends, the BSE small-cap and mid- cap indices lost 2.17 and 1.96 per cent, respectively.

Japan's Nikkei led an Asian share slump by falling 3.84 per cent, while Hong Kong's Hang Seng plunged 2.24 per cent.

European markets also sank in their opening trade.

Oil cos decline on petrol, diesel price cut          

Share prices of oil marketing companies - HPCL, BPCL and Indian Oil - fell by up to over 3 per cent on Tuesday as petrol rate was cut by Rs 2 per litre and diesel by Rs 0.50.

The scrip of Hindustan Petroleum Corporation Ltd declined by 3.35 per cent to settle at Rs 815.40, while Bharat Petroleum Corporation Ltd slipped 2.42 per cent to Rs 862.15 on BSE.

Shares of Indian Oil Corporation lost 2.28 per cent to Rs 405.20.

Monday’s cut in petrol and diesel prices was the third time rates were reduced August on the back of global oil rates.

ATF (jet fuel) price was cut by a steep 11.7 per cent on Tuesday, while non-subsidised domestic LPG rates were reduced by Rs 25.5 per cylinder.

Oil firms had last cut petrol price by Rs 1.27 a litre and diesel by Rs 1.17 per litre with effect from August 15.

Prior to that, rates of petrol were cut on August 1 by Rs 2.43 a litre and that of diesel by Rs 3.60.

"The movement of prices in international oil market and INR-USD exchange rate will continue to be monitored closely. Developing trends of the market will be reflected in future price changes," IOC had said. — PTI