BUSINESS

Sensex Plunges Nearly 700 Points, Biggest Single Day Fall In Nine Months

A shortlived recovery.

11/11/2016 5:34 PM IST | Updated 11/11/2016 5:50 PM IST
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MUMBAI -- The overnight recovery balm in stocks shortlived with benchmark Sensex came crashing down to hit four month lows below 27K today's trade, while loosing 698.86 points at 26,818.82, a biggest single-day fall not seen since nine months, while the broader Nifty finished below 8,300-level.

Domestic investors surrendered Thursday's gains following slew of negative factors starting from lower Asian stocks as US bond yield surged on optimism over new President elect Donald Trump policies of economic expansion amid increased spending while stoking inflation paving the way for rate hike.

Rupee tumbling to two month-lows to breach 67-level as dollar soared overseas pressured stocks, while investors concern over capital outflows from emerging markets was further besieged by weak quarterly earnings in index heavy- weights and stocks specific news.

Weak quarterly results from country's largest lender SBI fell 3 percent after the bank saw a massive 99.6 percent plunge in its September quarter consolidated profit at ₹ 20.7 crore, hit by 3-fold rise in bad loan provisioning.

Auto major M&M fell over 6 percent despite company reported 27 percent jump in its standalone profit.

Government decision to impose new levy on domestic flights affected Airline shares which fell 2 to 4 percent.

The 30-share Sensex opened gap-down 27,344.85 and drifted lower to 26,777.18 before closing at 26,818.82, showing a massive fall of 698.86 points, or 2.54 percent. (Sensex closed 26,999.72 on 30 June this year, while it fell 807.07 points 11 February, this year)

The Nifty also dropped 229.45 points, or 2.69 percent, to end at 8,296.30 after trading between 8,460.60 and 8,284.95. (it finished 8,287.75 on 30 June this year).

Meanwhile, Foreign Portfolio Investors (FPIs) sold shares worth ₹ 733.49 crore on Thursday, as per provisional data.

Overseas, Asian markets ended lower as US bond yields soared on expectations of US president-elect Donald Trump's will spark capital outflows from the emerging equity markets.

While European shared were trading higher boosted by gains among financials.

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