Further sell-off in Chinese stock market continued to give investors anxious moments as the benchmark BSE Sensex lost ground by 242 points to settle at 27,366.07, its lowest close in over two months. The index at one point was down by over 450 points, tracking a massive sell-off in Asian markets after China PMI showed that factories shrank at the fastest pace in six and a half years, heightening concerns about the health of its economy.
The uncertainty over US Fed rate hike too kept sentiment fragile. The rupee remained on a weak footing as it fell to a two-year low of 65.91 (intra-day), which led to heavy outflows by foreign investors. This apart, simmering geopolitical tension between South and North Koreas and weakness in emerging market currencies complicated the scene.
The BSE Sensex after starting <g data-gr-id="25">weak</g> fell to the day's low of 27,131.44, before ending down 241.75 points, or 0.88 <g data-gr-id="26">per cent</g>, at 27,366.07, <g data-gr-id="37">its</g> lowest closing since June 19. At the fag end, it covered up on the back of buying after <g data-gr-id="27">A P</g> Shah panel on MAT recommended giving relief to foreign investors for the period prior to April 1, 2015.
The wider NSE Nifty went below the 8,300-mark, tumbling 72.80 points, or 0.87 <g data-gr-id="32">per cent</g>, to 8,299.95. <g data-gr-id="33">Intra-day</g>, it traded between 8,225.05 and 8,322.20. "After a persistent selling, the markets edged lower as investors fretted over weakness in global stocks due to weak Chinese manufacturing data, which added to growing concerns over China's economic slowdown and slide in commodities prices," said Jayant Manglik, President, Retail Distribution, Religare Securities.
Foreign investors pulled out Rs 1,007.26 crore on Thursday, exchange data showed. Vedanta was the hardest hit (down 3.81 <g data-gr-id="30">per cent</g>), followed by Bajaj Auto, Hero MotoCorp and GAIL. Sectorally, realty, auto, capital goods, banking, power, oil & gas and metal ran up big losses. On a weekly basis, the Sensex lost 701.24 points and the NSE Nifty 218.60 points. Overseas, key indices in Japan, China, Hong Kong and Taiwan came off between 1.53 per cent and 4.27 per cent. Broader markets such as mid-cap and small-cap indices also trended lower. Out of 30-share index, 22 ended in the red.
Rs falls by 29p to 65.83 per $
Riding on global currency volatility wave, the rupee on Friday plummeted sharply by 29 paise to close at a fresh two-year low of 65.83 against the US dollar on high demand for <g data-gr-id="150">greenback</g> from banks and importers. Heightened fears of a China-driven global economic <g data-gr-id="66">crisis as well as worries of imminent Fed rate hike predominantly</g> kept intense pressure on the domestic currency.
Gold soars by Rs 480 per 10 gm
Gold reclaimed Rs 27,000-level on Friday after a gap of two months by climbing Rs 480 to Rs 27,180 at the bullion market here supported by a firm trend in <g data-gr-id="160">global</g> market coupled with domestic wedding season demand.