Mumbai, Feb 6: Equities nursed losses for the sixth straight session today as the post-Budget sell-off continued amid a meltdown in the world markets.
Investors saw a wealth erosion of more than Rs 2.72 lakh crore after the BSE Sensex plunged by 561 points to close at a one-month low of 34,195.94. The broader Nifty too shed 168.30 points to finish at 10,498.25.
Global markets nosedived today after a record-breaking loss on Wall Street, extending a global rout as investors fret over rising US borrowing costs.
The Dow on Monday suffered its worst points fall in history and wiped out all its 2018 gains, while the S&P 500 also took a beating.
Domestic participants were also anxious ahead of the RBI policy meet outcome amid indications that the central bank will keep rates on hold in view of firming inflation.
The start was distinctly weak as the Sensex crashed by about 1,275 points to sink below the key 34,000-mark while the NSE Nifty plunged 390 points within minutes of opening.
However, value-buying emerged at several counters during the late afternoon session. The Sensex finally ended at 34,195.94, down 561.22 points, or 1.61 per cent.
This is its weakest closing since January 5 when the gauge had settled at 34,153.85.
The 50-share NSE Nifty too closed down 168.30 points, or 1.58 per cent, at 10,498.25 -- a level last seen on January 3 when it closed at 10,443.20.
Intra-day, it touched a low of 10,276.30 and a high of 10,594.15.
The Sensex has now lost 1,769.08 points since the Budget on February 1, which imposed a long-term capital gains tax on equities and projected a wider fiscal deficit than earlier targeted.
"The crash in the mother market -- the Dow plunging by 2200 points in two days -- has unnerved equity markets globally. The trigger for the sell off in the US is the fear that the Fed might be behind the curve.
"Indian market is in tune with global markets in this downturn. In India also valuations are high, particularly in mid and small caps," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
According to provisional data, foreign portfolio investors (FPIs), who had been making persistent purchases, net sold shares worth Rs 1,263.57 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 1,163.64 crore yesterday.
In the Sensex pack, Tata Motors emerged as the worst performer by crashing 5.45 per cent, followed by TCS at 3.58 per cent.
Other losers were RIL, Dr Reddy's, Sun Pharma, ICICI Bank, Infosys, Maruti Suzuki, L&T, M&M, Hero MotoCorp, HDFC Bank, Adani Ports, NTPC, Wipro, Power Grid, Bajaj Auto and Kotak Mahindra Bank, declining up to 2.70 per cent.
Sector-wise, the BSE IT index fell the most at 2.80 per cent. Consumer durables, teck, realty, healthcare, FMCG, PSU, auto, metal, power, oil & gas, bankex and infrastructure stocks also kept low.
Small-cap and mid-cap indices lost 2.19 per cent and 1.68 per cent, respectively.
Overseas, most Asian indices ended lower. Japan's Nikkei fell 4.73 per cent, Hong Kong's Hang Seng lost 5.12 per cent, while Shanghai Composite Index shed 3.35 per cent.
European shares too were in bad shape in their opening deals. Frankfurt's DAX fell 1.97 per cent and Paris CAC lost 1.75 per cent. London's FTSE too fell 1.73 per cent.