The Sensex dropped over 300 points to 38,522 during the early hours on Monday due to sell-offs mainly in financial, metal and auto stocks on the back of subdued global cues. With Sensex plunging low, Nifty 50 also slipped by 87 points to 11,425.
Multiple sectoral indices at the National Stock Exchange (NSE) were in the red, apart from IT and FMCG. Yes Bank stocks plunged by a big 9.85% at Rs 43.95. Indusind Bank slipped by 5.7% and ICICI Bank was down by 2.6%.
Metal stocks dipped with JSW Steel plunging by 3.7%, Tata Steel by 3.5%, Vedanta by 2.8% and Hindalco by 2.6%. Tata Motors lost by 3.2 per cent, dropping to Rs 120.45 per share as news of Jaguar Land Rover suspending production for a week after the announced Brexit date of October 31. Stocks of Cipla, Zee Entertainment and Tata Motors witnessed a drop. With most of the sectoral indices at the NSE remaining in red, IT stocks of HCL technologies went up by 2.4%, Tata Consultancy and Infosys both gained 1.1%. Heavyweight Reliance Industries was up marginally by 0.4%.
Meanwhile, Asian stock markets were trading mixed as global investors continued to observe the developments in the US-China trade front. There are various reports of Donald Trump-led US government planning to impose new financial pressure tactics on China - there is even a possibility of the Trump administration delisting Chinese companies from US stock exchanges.
In Japan, the Nikkei 225 slipped by 0.41% as shares of index heavyweight and conglomerate Softbank Group plunged more than 2.5%. Hang Seng index traded largely flat with the Shanghai composite shedding 0.18%.
Just earlier last week, the Indian Government had made a historic decision to cut down the corporate tax rate in its latest effort to boost the Indian economy which recently reported its lowest growth rate in six years. October 15 has also been set as a set deadline by the government for central PSUs to clear overdue payments to vendors and exhorted them to front-load capital expenditure as it aims at lifting the six-year low economic growth.
(With Inputs from ANI)