Sensex cracks over 350 points on global selloff; Nifty below 10,600

Domestic equities benchmark BSE Sensex plunged over 350 points on Wednesday as investors turned jittery over political uncertainty in the US and fears of a global economic slowdown amid heavy selloff by foreign investors.

The 30-share index slumped 360.95 points, or 1.02%, to 35,109.20 in early trade. It had fallen 271.92 points, or 0.76%, to 35,470.15 in the previous session on Monday.

The NSE Nifty too shed 112.30 points, or 1.05 per cent, to 10,551.20.

The losses on Dalal Street were led by metal, realty, banking, IT, pharma and auto stocks.

Top losers include Yes Bank, TCS, HUL, Kotak Bank, M&M, Sun Pharma, Tata Motors, Infosys, Bajaj Auto, Tata Steel, Reliance, ICICI Bank and SBI, falling up to 3%.

HDFC was the only gainer on Sensex, trading marginally higher than its previous close.

Financial markets were closed Tuesday on account of Christmas.

According to experts, investors are jittery over the political unpredictability in the U.S..

U.S. President Donald Trump on Tuesday ruled out an end to the partial government shutdown till the Congress approve funds for building a wall along the Mexican border to prevent entry of illegal immigrants.

Democrats and some Republicans have rejected Mr. Trump’s demand for the U.S.-Mexico border, following which on last week he refused to sign a wider spending bill, temporarily stripping funding from swaths of the government.

Global investors also took cues from Wall Street stocks which plunged for a fourth straight session Monday amid rising doubts over the U.S. economy after Treasury Secretary Steven Mnuchin’s efforts to reassure investors fell flat.

Markets were also unnerved by weekend news reports that Mr. Trump was weighing whether to fire Federal Reserve Chairman Jerome Powell, accounts that Mr. Mnuchin said Mr. Trump had denied.

The rupee, meanwhile, gained against the U.S. dollar, and was trading at 69.82 a dollar, up 0.46% from its previous close.

Brent crude, the international benchmark, was down 0.43% at $50.55 per barrel.

Stocks of aviation and oil marketing companies rose as crude prices fell. Spicejet and Jet Airways rose up to 2%, while IOC and BPCL gained up to 1 per cent.

On a net basis, foreign portfolio investors (FPIs) sold shares worth ₹577.10 crore Monday, while domestic institutional investors (DIIs) were net buyers to the tune of ₹186.14 crore, provisional data available with BSE showed.

Elsewhere in Asia, Hong Kong’s Hang Seng was fell 0.40%, Kospi dropped 1.57% and Shanghai Composite Index shed 0.02%; while Japan’s Nikkei was up 0.65% in early trade.