Sensex crashes 551 points; Nifty slumps below 8,400

RSTV Bureau

market_shareMarkets took a beating on Monday over concerns that stricter norms for participatory notes may hit foreign investments. A major fall in Asian markets, especially China also added to the rout.

BSE Sensex crashed over 551 points to end at 27,561.38, its weakest closing in over five weeks. The NSE Nifty also dipped below the 8,400 mark, finally closing at 8,361.

According to equity brokers, the indices slumped amid fears that the government may accept Supreme Court-appointed Special Investigation Team (SIT) recommendations of stricter norms for participatory notes (P-notes) on markets.

Finance Minister Arun Jaitley’s assurance that the government will not go for any “knee-jerk” reaction, failed to lift investor mood.

“No such step would be taken which could adversely impact investment sentiment in the country,” Jaitley said.

Sensex dipped below the 28,000-mark to touch a low of 27,529.57 before ending at 27,561.38. This resulted in a fall of 550.93 points or 1.96 per cent.

Monday’s closing was the lowest since June 19, when the Sensex had closed at 27,316.17. This is also the second biggest single-day fall since June 2 when the 30-share index crashed by 660.61 points.

The broader Nifty also succumbed to all-round selling and slipped below the 8,400-mark. Nifty fell by 160.55 points, a fall of 1.88 per cent to finally close at 8,361.

Mid-cap and small-cap indices closed lower by 1.38 per cent and 1.07 per cent, respectively.

Tata steel was the top Sensex loser, tumbling 5.17 per cent, followed by Hero MotoCorp which fell by 4.84 per cent.

Asian markets saw a massive sell-off over worries that the Chinese economy is heading for a sharp slowdown.

Shanghai dived 8.48 per cent, Japan’s Nikkei fell 0.95 per cent and Hong Kong’s Hang Seng 3.09 per cent. European stocks too slid in early trade.

(With inputs from PTI)