As oil prices spill, Sensex nosedives 418 pts; Nifty 126

Indian markets hit 20-month lows on Wednesday, following continued fall in crude oil prices and a global selloff. While the S&P BSE Sensex tanked 417.80 points (1.71 per cent) to end at 24,062.04, the Nifty 50 closed 125.80 points (1.69 per cent) lower at 7,309.30.

“Bears continue to hammer the bourses on global selloff and crude hitting multi-year lows. Further, the International Monetary Fund (IMF) slashing its global growth forecasts for the third time in less than a year also spooked the sentiment worldwide. Relentless selling by foreign portfolio investors and sharp depreciation in the rupee raised concerns for investors,” Hem Securities Director Gaurav Jain said.

According to Vinod Nair of Geojit BNP Paribas, further downside to the markets are very much possible. “Expectations of the markets going downhill are likely to strengthen as the double whammy impact of oversupply in crude and the concerns in the Chinese economy will dampen the investors’ preference towards equities. Stabilisation in the currency market and oil prices will be the focus area during the near-term,” Geojit BNP Paribas Financial Services Head Vinod Nair said.

Metal and banking pack led the list of losers on the Nifty 50. Vedanta was the top loser ending down 7.15 per cent, at Rs 64.30. Other major losers included Hindalco (down 5.85 per cent to Rs 67.65), Adani Ports (down 5.65 per cent to Rs 219.70), PNB (down 5.62 per cent to Rs 87.25) and SBI (down 5.14 per cent to Rs 173.55). RIL also ended down over 3 per cent despite posting results that beat analyst estimates.

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