Mumbai : Equities snapped a two-day rally as the market benchmark Sensex plunged by 330 points to 24,287.42 ahead of the release of GDP numbers for the third quarter as selling pressure intensified in the second half of the session on bearish European cues.
The BSE barometer, which opened on a flat note, remained sideways for most part of the session awaiting quarterly GDP numbers, but sank heavily on weak opening in European shares.
Most markets in Asia, including China and Hong Kong, were closed for the Lunar New Year holiday. “Continuous fall in oil prices and slowdown in China is impacting global markets as well as India. European market has reacted negatively on disinflation concerns,” said Vinod Nair, Head-Fundamental Research of Geojit BNP Paribas. Moreover, the rupee depreciated by as much as 30 paise against the American currency.
The BSE Sensex resumed higher at 24,637.41 and firmed up further to a high of 24,698.95 on early buying in view of good foreign capital inflows. However, it dropped afterwards to 24,196.84 on fag-end selling pressure on the back of lower European cues, before finishing at 24,287.42, showing a loss of 329.55 points or 1.34 per cent.
This was the index’s biggest single-day fall since January 20. It had gained 393.65 points in the last two sessions. The NSE 50-share Nifty also moved down by 101.65 points or 1.36 per cent to close at 7,387.25 after moving in a range of 7,512.55 to 7,363.20.
