 "Market meltdown: Sensex plunges more than 1,100 points")
AT 11AM, the Sensex was at 26,256, weaker by 1,109 points or 4.06% and the Nifty was at 7954, down 345 points or 4.1%.
The broader markets are also facing the heat, with the midcap index plunging by 4.7% at 10686 and the smallcap index shedding 5% at 11,027.
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"This fall has largely been in reaction to the global markets carnage, the second effect of which has been a weaker rupee. Global markets have crashed following weeks of reports regarding China’s low economic growth as its consumption story falters. This is in addition to other irritants such as Europe’s woes and a general slowdown in economies across the globe. The US rebound story too is yet incomplete. In such markets, the Indian economy still remains a bright spot. Of course, low commodity prices are good for India but a global slowdown is not. Anyway, this is no Black Monday, it is a buying opportunity and sharp investors are looking for good openings in specific stocks. Operationally, there are no issues due to stringent margin requirements. Our markets may well be first off the block in recovering from this fall, it is time to look for bargains in high quality stocks," says Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.
GLOBAL MARKETS
Asian shares and commodities have weakened further on fears of economic slowdown in China. The benchmark Shanghai Composite has extended losses and slumped over 9% while the Hang Seng and Nikkei were down over 4% while Straits Times was down 3.5%.
US shares recorded their worst single day fall in four years on the back of economic slowdown in China. The Dow Jones, S&P 500 and Nasdaq ended over 3% lower on Friday.
RUPEE
The Indian rupee also dropped to fresh two-year low and was trading at 66.43 down 60 paise to the US dollar compared to it previous close on Friday on the back of an appreciating dollar.
CRUDE OIL
Crude prices dived in Asia today, with US oil hovering below the key USD 40 a barrel mark amid deepening concerns about weak Chinese economic growth and global oversupply. The US benchmark West Texas Intermediate (WTI) for October delivery fell USD 1.04 to USD 39.41, while brent crude for October eased 91 cents to USD 44.55. WTI extended losses after briefly dipping to USD 39.86 on Friday in New York -- breaking USD 40 for the first time in six years after data showed an increase in US oil rigs despite ample global supplies.
SECTORS & STOCKS
All the sectoral indices are in the red, with the metal and banking indices slumping by more than 4% each. All the Nifty-50 constituents are also trading weak this morning.
Among individual stocks, ONGC, Gail and BHEL are the top losers on the BSE.
Metal stocks have weakened further in today's trades on worries over lower demand amid sluggish growth in China, the world's largest consumer. Vedanta dropped over 6% while Tata Steel and Hindalco are down 3-4% each.
In the banking sector, Axis Bank, ICICI Bank and Sbi have plunged by 4-5% each. Among the midcap banking stocks, Bank of India, Punjab National Bank, Canara Bank, Yes Bank, Bank of Baroda and Federal Bank are down more than 7% each.
In the energy space, ONGC, Gail and Reliance Industries have lost 4-6% each.
Auto stocks have also plummeted on concerns that sales growth in August would remain muted; Tata Motors, Maruti Suzuki and M&M are down 3-5% each.
Capital goods shares are also witnessing profit-taking on concerns that fresh order inflows may be impacted. L&T and BHEL down 3-6% each.
IT stocks, which had gained in the previous sessions, are witnessing profit taking, with Infosys, Wipro and TCS down over 3% each.
ICICI Bank, Tata Motors, Oil and Natural Gas Corporation (ONGC), Tata Steel and Hindalco Industries are among the 11 stocks from the 30-share Sensex and 50-share Nifty that have touched their respective 52-week lows after the benchmark indices fell nearly four percentage points each in early morning trades.