Markets tumble on Fed rate hike uncertainty, China sell-off

Markets closed the session on a weak note as the sell-off intensified in the late trades tracking loss in the China markets despite the attempt by the Chinese policymakers and regulators to placate the markets with the promise of financial market reforms and assurance of a stabilizing economy.

Meanwhile, investors continued to remain on their toes on the back of mixed US jobs data which failed to give clarification regarding the Fed rate hike. Provisionally, the Sensex slumped 324 points to close at 24,878 and the Nifty plunged 101 points to end at 7,554.

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(updated at 3:30 PM)

Benchmark shares indices extended losses in late noon trades weighed down by profit taking in pharma shares.

Further, weakness in the rupee, persistent selling by foreign institutional investors at higher levels, weak monsoon forecast and growth concerns from China also dampened sentiment.

At 3:10 PM, the 30-share Sensex was down 290 points at 24,912 and the 50-share Nifty was down 92 points at 7,563.

The broader markets underperformed the benchmark indices with the BSE Mid-cap and Small-cap indices down 1-1.5% each. Market breadth continued to remain weak with

GLOBAL EVENTS

China has revised its annual economic growth rate in 2014 to 7.3% from the previously released figure of 7.4%, the National Bureau of Statistics said on Monday.

The job creation in August was the slowest in 5 months and significantly undershot consensus expectations of about 220,000. However, there was a  notable fall in the unemployment rate to 5.1%, the lowest level since April 2008.

RUPEE

The Indian rupee dipped to a fresh 2-year of 66.76 against the US dollar compared to the previous close on dollar demand from banks and weakness in domestic equities.

SECTORS & STOCKS

All sectoral indices on the BSE were trading with losses with Metal and Healthcare indices recording the highest losses.

Metal shares weakened on concerns that sluggish economic growth in China, the world's largest consumer of metals, would hurt export demand going forward. In the metal pack, Hindalco, NMDC, Tata Steel, JSPL, Hindustan Copper and JSW Steel were down between 0.5-3%.

Healthcare shares are slipping in today’s trade as investors booked profits at higher levels.  Lupin, Dr Reddy’s Lab and Sun Pharma are trading lower between 1-2%. Dr Reddy’s is down 1.5% after the company decided to recall over 55,000 bottles of Amlodipine besylate and Atorvastatin calcium tablets, used to treat high blood pressure and cholesterol related diseases, in the US market.

Tata Motors was up over 1%. The company has introduced its first luxury armoured vehicle new Range Rover Sentinel that can provide protection against a wide variety of attacks.

State-owned oil explorer was up after overseas investment arm -- ONGC Videsh (OVL) -- has acquired a 15% stake in Vankor oil field in East Siberia, Russia’s second-largest oil field from Rosneft for about $1.35 billion.

Capital goods majors BHEL and L&T are down 0.5-1% ahead of the IIP numbers slated to release later during the weekend.

Among other shares, Abbott India has moved higher by 3% to Rs 5,375, also its lifetime high on the BSE, in otherwise subdued market. Post June quarter results, shares of pharmaceutical company outperformed the market by gaining 20% from Rs 4,479 on August 11, 2015, compared to 10% fall in the S&P BSE Sensex.