How US stock plunge will affect India, Asian markets sliding

New Delhi, Feb 6: The US Dow suffered its deepest fall in history, erasing all of its 2018 gains, while the S&P 500 took a beating to sit down for the year yesterday. Asian markets followed the trend with Tokyo diving more than 5 per cent, Hong Kong 4 per cent and Sydney 3 per cent, Singapore 2.3 per cent, Seoul 3 per cent, Taipei 3.7 per cent, and Shanghai 2.1 per cent. The heavy profit booking comes after months of surges fuelled by corporate earnings, global outlook and optimism over the US economy. 


In domestic markets, caution ahead of RBI monetary policy meeting which begins later in the day and the rupee depreciating by 29 paise to 64.36 against the dollar too dampened the sentiment, brokers said. Strong selling pressure dragged down all the Sensex and the Nifty components. 


Foreign institutional investors sold equities worth Rs 1,263.57 crore in yesterday's trade, as per provisional data. The laggards include Tata Motors, Yes Bank, Axis Bank, SBI, Asian Paints, Tata Steel, Adani Ports, ICICI Bank, IndusInd Bank, HDFC Bank, Maruti Suzuki, L&T and Hero MotoCorp, plunged by up to 7.55 per cent.
PTI