Stocks from banking, metal and power sector led losses as key benchmark indices tumbled. The barometer index, the S&P BSE Sensex, lost 558.76 points or 2.17% at 25,206.02, as per provisional closing data. The 50-unit CNX Nifty slumped 167.95 points or 2.15% at 7,655.05, as per provisional closing data. The Sensex hit its lowest level in more than 13 months when it plunged 645.72 points at the day's low of 25,119.06 in intraday trade. The Nifty hit its lowest level in more than a year when it plunged 196.15 points at the day's low of 7,626.85 in intraday trade. The steep slide on the domestic bourses materialized as world stocks fell on global growth worries.
Bank stocks fell after a credit rating agency said in a research note that the Reserve Bank of India's (RBI) draft guidelines on computation of base rate, if implemented in its current form, will adversely impact profitability of Indian banks.
Weakness on the domestic bourses was broad based. On BSE, there were more than three losers against each gainer. 2,112 shares declined and 583 shares rose. A total of 84 shares were unchanged. The BSE Mid-Cap index was off 1.9%. The decline in the index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index was down 2.47%. The decline in the index was higher than Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2682 crore, higher than turnover of Rs 2362.85 crore registered during the previous trading session.
In sector trends, shares of power generation and power distribution firms tumbled. Tata Power (down 5.18%), Reliance Power (down 5.06%), Adani Power (down 4.33%), JSW Energy (down 4.47%), Reliance Infrastructure (down 4.59%), Torrent Power (down 3.84%), NTPC (down 2.89%), NHPC (down 1.52%), GVK Power & Infrastructure (down 0.86%) and Power Grid Corporation of India (down 3.17%) edged lower.
Metal and mining stocks declined. Vedanta (down 4.74%), Tata Steel (down 4.64%), NMDC (down 3.95%), Jindal Steel & Power (down 5.51%), Hindalco Industries (down 4.27%), JSW Steel (down 1.92%), Steel Authority of India (down 3.18%), National Aluminium Company (down 2.11%) and Hindustan Zinc (down 2.44%) edged lower.
Index heavyweight and housing finance firm HDFC dropped 2.39% at Rs 1,144.
Index heavyweight and IT major Infosys fell 2.15% at Rs 1,076.95.
Index heavyweight and oil refiner Reliance Industries (RIL) declined 2.25% at Rs 834.50.
Index heavyweight and engineering & construction major L&T shed 2.18% at Rs 1,532.
In overseas markets, European shares fell sharply on global growth worries. Trading in US index futures indicated that Dow may slide 158 points at the opening bell today, 4 September 2015. Earlier during the global day, Asian stocks edged lower on caution ahead of the influential monthly US job data for August 2015. The job data could be a key factor for the US Federal Reserve on its decision whether to raise interest rates from current near zero at its two-day monetary policy meeting which begins on 16 September 2015.
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