Sensex plunges over 700 points; Nifty breaks 8,300

Nifty50 breaks 8300 levels in a volatile market

The markets continued to trade weak in late afternoon deals, tracking mixed trend seen in Asian markets, as the initial euphoria post Donald Trump's victory in the US elections faded. Also impacting sentiment was the demonetisation of Rs 500 and Rs 1000 notes that dampened sentiment across sectors, especially, real estate, gems & jewellery and consumption segments.

At 15:07 pm, the S&P BSE Sensex was trading at 26,818 levels, down 700 points, while the broad-based Nifty50 index was quoting 231 points lower at 8,295 levels.

Shares of SBI fell over 3% after the bank posted a 34.5% drop in its second quarter net profit at Rs 2,538 crore on a standalone basis. The stock also dragged Nifty Bank index by 2% in noon deals. Besides SBI, ICICI Bank, Bank of Baroda, YES Bank, Punjab National Bank and Canara Bank were among the other losers that lost 2.5% - 4%.

WORLD MARKETS

Asian shares stumbled on Friday and emerging market currencies skidded as investors feared higher interest rates under incoming President Donald Trump will spark capital outflows from the region.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.4% as U.S. bond yields continued to soar on views that Trump's spending plans will push up inflation, possibly triggering more aggressive rate hikes by the Federal Reserve.

Emerging markets bore the brunt of selling, with Indonesian shares slumping 3% while the rupiah currency fell more than 2.5% to 4-1/2-month lows. The Mexico peso, sank to near its record low hit after Trump's surprise sweep to power.

Japan's Nikkei bucked the trend, rising more than 1% to 6-1/2-month highs the yen weakened against the firming dollar.

On Wall Street, the U.S. S&P 500 Index rose 0.2% while the Dow Jones industrial average jumped 1.2%, smashing through its previous record high set in August by almost 1%.

With Reuters inputs