Mumbai: The benchmark BSE Sensex slipped over 560 points and the NSE Nifty cracked the 8,400-mark on Monday following concerns over stricter norms for participatory notes and slump in Chinese stock market.
Sensex was down 569.90 points at 27,542.41 and Nifty was down 161.75 points at 8,359.
The 30-share index which slumped below the crucial 28,000-mark in early trade, continued to slide and dived by 437.85 points or 1.55% to trade at over two-week low of 27,674.46 during mid-session.
The gauge had tumbled by 392.62 points in the previous two sessions on muted earning figures reported by companies and weak global cues.
All the sectoral indices led by metal and capital goods, tumbled up to 2.40%, dragging down the key indices.
The market sentiments were also hit by fresh weakness in the rupee which depreciated by 7 paise to Rs 64.11 (intra-session) against the dollar.
Finance Minister Arun Jaitley’s statement that the government will not take any “knee-jerk†reaction that will adversely impact country’s investment climate also failed to boost the markets.
Tata Steel, Axis Bank, Hindalco and Tata Motors were among the major losers.
A sharp fall in the Asian markets also contributed the weak markets sentiments. Asian stocks had already started the week on a low note, rattled by a last week’s report on Chinese manufacturing that sparked a sell-off in gold as well as copper and other commodities.
China stocks plunged over 8% on Monday, marking their biggest one-day drop in more than eight years, as a government-triggered rebound petered out amid profit-taking, concerns over economic health and fears of an end to Beijing’s inclination toward looser monetary policies.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 8. %, to 3,818.73, while the Shanghai Composite Index lost 8.5%, to 3,725.56 point
The traders were cautious over reports on SEBI likely to review participatory notes norms. A government panel on black money has asked SEBI to obtain “beneficial ownership†details for such instruments, as also for monitoring any unusual rise in stock prices, according to media reports.