On Tuesday, markets reacted sharply to the GDP figures that came out on Monday. GDP for the months of April to June 2015 was less than expected at 7 per cent. The previous quarter was higher by half a per cent.
Sensex was over 270 points down in opening trade and plummeted below the crucial 26,000 mark in early trade. It finally closed 587 points down at a one year low of 25,696.44, a fall of 2.23 per cent.
Nifty too tanked 185 points to close at 7,785.85, falling below the 7,800 mark.
Lower than expected GDP data and a massive sell-off in global equities led to the fall.
Sensex, the 30-share index continued its slide after opening in the red. It dived 703.21 points or 2.67 per cent to trade at 25,579.88 during the mid-session.
The NSE Nifty too came under selling pressure and dropped 218.85 points or 2.74 per cent during mid-session to trade at 7,752.45.
Dalal Street witnessed all-round heavy selling in banking, metal, realty, capital goods, PSU, auto, consumer durables, oil&gas, power, FMCG, healthcare and IT stocks. Sectoral indices led by metal, bank and realty, tumbled up to 4.15 per cent.
Axis Bank was the biggest loser falling by 5.24 per cent, followed by Hindalco which fell 5.18 per cent. 29 out of 30 constituents of the Sensex closed in the red. Sun Pharma was lone gainer, rising 0.34 per cent.
“Sell-off was mainly triggered by the banks especially PSU banks on raising the concerns of pressure on their margins,” said Gaurav Jain Director of Hem Securities.
Both the Sensex and Nifty are at their lowest levels since August 2014.
The GDP data that came out on Monday showed that domestic growth had slowed down to 7 per cent in the June quarter from 7.5 per cent in the previous quarter. Meanwhile, a private survey has showed that China factory output shrank to a three-year low.
The concerns of a Chinese economy and a possible rate hike from US Fed kept the markets around the globe under pressure.
In the Asian markets, Shanghai Composite index was down 1.23 per cent, Japan’s Nikkei tumbled 3.84 per cent and Hong Kong’s Hang Seng dived 2.24 per cent.
European markets also opened in the red following the global trend.