Sensex tanks 525 pts on global selloff; Nifty drops below 17,400

Equity benchmark Sensex plunged 525 points on Monday, led by losses in index majors HDFC twins, Tata Steel and ICICI Bank amid a selloff in global markets.

The 30-share BSE index ended 524.96 points or 0.89 per cent lower at 58,490.93. Similarly, the broader NSE Nifty tumbled 188.25 points or 1.07 per cent to 17,396.90.

Tata Steel was the top loser in the Sensex pack, sinking nearly 10 per cent, followed by SBI, IndusInd Bank, HDFC, Dr Reddy’s and M&M.

On the other hand, HUL, Bajaj Finserv, ITC and HCL Tech were among the gainers.

“Indian markets finally seem to be taking a small pause, largely driven by nervousness in the global markets,” said Milind Muchhala, Executive Director, Julius Baer.

“Two key factors playing on the minds of global investors include the upcoming Fed meeting and the uncertainty building up in the Chinese real estate market due to stress on one of the major property players in the country,” he added.

While the markets are keenly awaiting clarity on Fed’s taper plans in terms of timelines and quantum, we believe it may give an advance notice on tapering in this week’s meeting, followed by a formal announcement at the following meeting in November, he stated.

Elsewhere in Asia, Hang Seng ended over 3 per cent lower. Bourses in China, Japan and South Korea were closed for holidays.

Stock exchanges in Europe were also trading with steep losses in mid-session deals.

Meanwhile, international oil benchmark Brent crude fell 1.92 per cent to USD 73.89 per barrel.