Sensex plummets 318 pts as bank, IT stocks weigh

Mumbai, August 26

After a day's breather, the benchmark BSE Sensex fell into correction on Wednesday as it tumbled by 317.72 points to 25,714.66 — its fourth fall in last five sessions — as fresh steps by the Chinese government to stabilise economy failed to revive market sentiment.

Participants also chose to book profits on account of August derivatives expiry on Thursday.

Heavy selling was seen in banking, healthcare, FMCG, IT, oil&gas, capital goods, auto, PSU and consumer durable stocks.

The broader NSE Nifty cracked the crucial 7,800-level.

China's central bank cut interest rates and slashed the amount of money banks need to hold in reserve to bolster its economy and end the stock market rout on Tuesday.

"The same sent pessimistic signals about the Chinese economy to the world markets," said Satya Prakash Goel Director of Bonanza Portfolio.

Consequently, Shanghai Composite index ended 1.27 per cent lower, while European stocks were down in morning deals.

The BSE 30-share index after rising to 26,156.61 points in early trade slipped into the negative zone and dipped below 26,000 to touch a low of 25,657.56 before ending 317.72 points or 1.22 per cent down at 25,714.66.

The index had risen by 290.82 points on Tuesday government said it is considering reconvening a special session of Parliament for passage of the stalled GST Bill.

The 50-issue NSE Nifty fell below the psychological 7,800-mark by tumbling 88.25 points or 1.13 per cent to 7,791.85.

BSE banking index fell the most by losing 1,68 per cent, followed by healthcare 1.14 per cent, oil&gas (0.98 pc), FMCG (0.96 pc), IT (0.96 pc) and capital goods (0.91 pc).

Gaurav Jain Director of Hem Securities said: "Continued fall in commodity prices and sell-off by the worried investors triggered the fall in equities worldwide".      

Among the 30-Sensex stocks, 18 ended lower.

Small-cap index, however, continued its upward journey and ended 0.16 per cent higher, while mid-cap shed 0.79 per cent.

Meanwhile, foreign investors sold shares worth Rs 2,080.01 crore Tuesday, according to provisional data. — PTI