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Bloodbath on Dalal Street: Sensex tanks 1,200 points, Nifty falls 300 points
Investors also seemed cautious ahead of the RBI policy meet as they feel that repo rate might be increased amid inflation concerns.
New Delhi: The BSE Sensex dipped below the 34,000-level by plunging around 1200 points in opening trade on Tuesday on heavy losses in metal, realty, capital goods, banking and oil & gas stocks amid a global rout in equity markets.
Extending its falling streak for the sixth straight session, the 30-share index fell by 1,274.35 points, or 3.66 percent, to 33,482.81 with all sectoral indices led by realty, consumer durables, metal and banking tradings in the negative zone.
The index had lost 1,526 points in the previous five sessions after its remarkable over 2,200-point gain in January month.
Also, the broader NSE Nifty cracked below 10,300-mark by falling 390.25 points, or 3.65 percent to 10,276.30.
In yesterday's closing Sensex plunged nearly 310 points to close at a three-week low of 34,757.16 and the NSE Nifty fell over 94 points to 10,667, dragged down concerns over certain budget proposals and sell-offs in global markets.
Investors also seemed cautious ahead of the RBI policy meet as they feel that repo rate might be increased amid inflation concerns, brokers said.
The last week's budget proposal of 10 percent long-term capital gains (LTCG) tax on equities and overshooting of fiscal deficit target also quashed investor optimism.
However, the government has tried to downplay the impact of budgetary proposals on domestic equities and attributed the current downtrend to global market cues.
Asian shares fell sharply on Tuesday after Wall Street suffered its biggest decline since 2011 as investors` faith in factors underpinning a bull run in markets began to crumble.
MSCI`s broadest index of Asia-Pacific shares outside Japan dropped 2.8 percent to one-month low, which would be its biggest fall in more than a year and a half, a day after it had fallen 1.6 percent.
Japan`s Nikkei dropped 4.6 percent. Australian shares dropped 3.0 percent to their lowest level since October while South Korean shares dropped 2.0 percent. All three broke below their 100-day moving average, a major support.
US stocks plunged in highly volatile trading on Monday, with the Dow industrials falling nearly 1,600 points during the session, its biggest intraday decline in history, as investors grappled with rising bond yields and potentially higher inflation.