Taking a sharp U-turn by giving up all the early gains, the benchmark BSE Sensex tumbled over 540 points at the closing trade, tracking weak European markets amid lingering global growth worries.
In addition, offloading of bets by participants ahead of September expiry in the derivatives segment on Thursday queered the pitch. Indian markets will be shut on Friday on account of a local holiday.
"Interest is missing primarily because of a truncated week and the F&O expiry day after tomorrow. Volatility will be high plus 8,000 levels (on the NSE)," Gaurang Shah, vice-president at Geojit BNP Paribas, said.
Amtek Auto plunges 10%, company defaults bond payment of Rs 800 crore
— Rajalakshmi Nirmal (@crajalakshmic)
The index had shed 25.93 points in yesterday’s choppy trade.
All sectoral indices led by metal, capital goods and power tumbled up to 4.2 per cent, dragging down the markets from their key levels. Metal index fell the most by 4.24 per cent, followed by capital goods 3.1 per cent and power 3.09 per cent.
Major Sensex losers were VEDL (-6.29%), Hindalco (-6.22%), Coal India (-5.4%), Tata Motors (-4.81%) and NTPC (-4.58%), while the only four gainers were Wipro (+0.4%), M&M (+0.2%), Sun Pharma (+0.13%) and Infosys (+0.08%).
The NSE Nifty dropped 165.1 points, or 2.07 per cent, to 7,812.
MMTC is up 5%; Company's board approves sale of 10% stake in Indian Commodity Exchange, total holding currently is 26%
— Rajalakshmi Nirmal (@crajalakshmic)
September 22, 2015Furthermore, fresh weakness in the rupee, which depreciated 7 paise to Rs 65.80 (intra-session) against the dollar, dampened the mood.
Sentiment turned off-colour after European markets declined in early trade as investors weighed Federal Reserve pointers that global growth concerns that delayed a rate hike last week could be temporary.
Mindtree is up 5%; Wins order from a Swedish medical device company for SAP implementation
— Rajalakshmi Nirmal (@crajalakshmic)
September 22, 2015Global markets
European shares fell on Tuesday, led lower by miners as copper prices slid on worries over Chinese demand, while the dollar hit its highest in almost two weeks after Federal Reserve officials signalled US interest rates could still rise this year.
Asian shares rose on Tuesday and the dollar held steady as US markets bounced back and the European Central Bank said it was prepared to ease monetary policy further.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.4 per cent at 0240 GMT, with Australia advancing 0.6 per cent and South Korea 0.3 per cent. Japanese markets are shut through Wednesday.