Sensex tanks 770 points; top domestic factors that dragged the market down - Economic Times, The Times of India

A host of factors, primarily domestic, have sent stocks tumbling in today’s trade.

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Updated: Sep 03, 2019, 09. 13 IST PM

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Top factors that sent stocks tumbling in Tuesday’s trade

Domestic equity indices BSE Sensex and NSE Nifty cracked over 2 per cent on Tuesday amid heavy selling following a set of subdued macroeconomic data. The 30 – share Sensex tanked as much as 770 points to 36 , 563 while NSE Nifty ended at 10, 798, down (points or 2.) per cent.

Here are the top domestic factors that have sent the stocks tumbling in early trade.

Subdued Q1 GDP print
Market sentiment got impacted after June quarter GDP data released on Friday showed the country’s growth rate slumped for the fifth straight quarter to hit an over six-year low of 5 per cent. According to anICICI Bankeconomist , the lower-than-expected GDP print indicated that the slowdown is more pervasive, underscoring the need for coordinated monetary and fiscal policy actions.

Weak core data & other macros
Official data on Monday showed the growth of eight core industries dropped to 2.1 per cent in July, mainly due to a contraction in coal, crude oil and natural gas production. And a private forecaster’s PMI data showed the country’s manufacturing sector activity declined to its 15 – month low in August. TheIHS MarkitIndia Manufacturing Purchasing Managers’ Index (PMI) declined to 51 4 in August, its lowest mark since May 2018, from 52 .5 in July.

Falling rupee and FII outflows
rupee tanked by 64 paise to 72 mark against the US dollar in early deals on Tuesday following weak macroeconomic data and sustained outflows by foreign portfolio investors (FPI). Overseas investors offloaded stocks worth a net of Rs 5, 920 crore in the domestic market in August even after the government rolled back enhanced tax surcharge on FPIs. In July, they had pulled out a net of Rs 2, 985. 88 crore from Indian stocks.

Aug auto sales data showed pain
Most of the auto stock traded in the red following subdued auto sales numbers for August. Tata Motors,Eicher Motors, Mahindra & Mahindra,Ashok Leylandand Maruti Suzuki slipped up to 2. 61 per cent. While Maruti reported a 33 per cent drop in August sales at 1, 06, 413 units, sale of passenger vehicles at Tata Motors fell 58 per cent.

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