Sensex nosedives on liquidity woes

Mumbai, September 24

BSE Sensex today suffered its worst single-day loss in seven months, extending its fall for the fifth day due to a meltdown in banking and auto stocks on liquidity concerns and a rout in global markets.

The 30-share index tanked 536.58 points or 1.46% to settle at a two-month low of 36,305.02, logging its biggest single-day loss since February 6 when it declined by 561.22 points.

This is the weakest closing since July 11 when it settled at 36,265.93. The index dropped a total 1,785.62 points or more than 5% in five sessions, wiping out Rs 8.48 lakh crore of market wealth.

Factors like crude oil prices hitting a four-year high, liquidity concerns after defaults by IL&FS, the rupee retreating a low of 72.73 against the US dollar beset investors.

The broad-based Nifty of the NSE crashed below the 11,000-mark, declining by 168.20 points or 1.51% to end at 10,974.90.

Liquidity concerns and reports that China has called off planned trade talks with the US weighed on the market sentiment, brokers said. — PTI