Sensex tanks exceed 200 points in early trade

Mumbai, August 1 () The BSE Sensex share benchmark index collapsed on Thursday more than 200 points in initial trade due to concerns about weak core industrial growth data and sustained outflows of foreign funds.

The 30-share index traded 205.69 points or 0.55 percent less at 37,275.43; and the broader Nifty fell 16.15 points or 0.44 percent to 11,069.25.

In the Sensex package, Vedanta received the biggest hit, trading 2.92 percent less, followed by Tech Mahindra, Yes Bank, Tata Motors and Tata Steel.

However, Power Grid, IndusInd Bank, ICICI Bank, Asian Paint, Maruti and HCL Tech were listed in green.

In the previous session, Sensex won 83.88 points or 0.22 percent to finish at 37,481.12. The broader Nifty NSE finished 32.60 points or 0.29 percent up at 11,118.00.

Markets continue to witness the persistent outflow of foreign funds from the shares.

Foreign investors sold shares worth Rs 1,497.07 crore in net terms on Wednesday, according to provisional data with the stock exchanges.

The growth of eight central industries fell to 0.2 percent in June, mainly due to the contraction in the oil-related sectors, as well as cement production, according to official data.

On Wednesday, the government also revised down the growth rate of these eight sectors for May to 4.3 percent from the previous estimate of 5.1 percent.

The general sentiment of the investors was weak after the government published on Wednesday the figures of growth of the production of the central industries, which fell to 0.2 percent in June, experts said.

Meanwhile, the government fiscal deficit touched Rs 4.32 lakh crore for the June quarter, which is 61.4 percent of the estimated budget for the 2019-20 fiscal year.

The US Federal Reserve UU. It reduced the loan reference rate by 25 basis points to 2.0-2.25 percent on Wednesday for the first time in more than a decade.

In other parts of Asia, the Shanghai and Hang Seng composite index traded lower, while Nikkei and Kospi were green in their respective initial sessions.

US stocks ended on a negative note on Wednesday.

Meanwhile, the rupee decreased 32 paise to 69.12 against the US dollar in the morning trade. The world benchmark for crude oil Brent crude futures rose 0.70 percent to 65.17 per barrel. BAL BAL

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