Sensex slumps over 400 points; rupee at two-year low

Bankex, Auto and Capital Goods indices were the top sectoral losers on the BSE down over 2% each

The Sensex was down over 400 points after the weakeing rupee which hit a two-year low raised concerns of foreign capital outflows while worries over global growth slowdown also dampended investor sentiment.

At 10:40AM, the 30-share Sensex was down 401 points at 27,174 and the 50-share Nifty was down 135 points at 8,241.

In the broader market, the BSE Mid-cap and Small-cap indices were down over 1.6% each. Market breadth was weak with 1,728 losers and 427 gainers on the BSE.

Meanwhile, a survey on China's manufacturing sector slumped to a six-and-a-half-year low which further weighed on the sentiments.

RUPEE

The rupee weakened by 35 paise to trade at fresh two-year low of 65.85 against the dollar today on concerns over capital outflows by foreign funds.

Foreign funds were net sellers in equities to the tune of Rs 1,007 crore on Thursday, as per provisional data on the stock exchange.


SECTORS & STOCKS

Oil stock were down after global crude oil prices extended losses on concerns that global economic growth slowdown would hurt demand. Reliance Industries, ONGC and GAIL were down 1.2-3.4% each. Further, state-owned oil marketing companies such as HPCL, IOC and BPCL were trading 1-2% lower.

In the financial space, ICICI Bank, HDFC, Axis Bank, HDFC Bank were down 0.5-2.5% each on concerns that demand for additional credit would remain subdued.

Bharti Airtel was down over 3%. The company was one of the successful applicants to received payments bank licence.

IT exporters such as Infosys and TCS were up 0.5% each on expectations that the weakeing rupee would boost revenues during the current quarter

Meawnhile, Infosys has launched three new services which, it said, would work as a catalyst in positioning it as a next-generation services company. The three initiatives together would be known as ‘Aikido’, name of a popular Japanese martial art.

Lupin was up 0.8%. The company on Thursday said it has received USFDA approval to market generic version of Teva's Fenofibrate tablets in dosages of 54 mg and 160 mg.

Amtek Auto rebounded after the sharp decline in the previous sessions. The stock was up 7%. The stock had crashed on worries over huge debt and exclusion from the F&O segment.

Metal stocks continued to exhibit weakness on fears of demand slowdown from China, the world's largest consumer of metals, on the back of sluggish factory growth. Hindalco, Vedanta and Tata Steel were down 2.8-3.2% each.

In the financial space, ICICI Bank, HDFC, Axis Bank, HDFC Bank were down 0.5-2.5% each.

Among other shares, state-owned banks witnessed profit taking on worries that payment banks pose a risk to public lenders' market share. State Bank of India (SBI), Canara Bank, Central Bank of India, Allahabad Bank, Bank of India, Union Bank of India, Bank of Baroda and Oriental Bank of Commerce were down 3%-4% each.

Shares of Tata Communications were up 3% in an otherwise weak market on reports stating that two gigantic global firms Google Inc and Amazon are planning to bid for acquiring the telecom and internet service provider's data centre business.