Mumbai: The BSE Sensex slaughtered quite badly on Thursday led by outflow of foreign money. Index shed more than 450 points intraday (a biggest one day fall since February 27), losing all its previous day's gains due to selling in every sector.
The 30-share BSE benchmark fell 405.24 points or 2.30 per cent, to close at 17,196.47, weighed down by 28 components. Meanwhile, the 50-share NSE benchmark slipped 136.50 points or 2.54 per cent to 5,228.45 after a spike in global risk aversion triggered fears of foreign selling at a time of waning confidence in the struggling government.
Weaker-than-expected euro zone PMI was a trigger to pronounced selling in Indian stock markets and the rupee in the afternoon, in a day already marked by concerns about a government auditor report that said the government may have sold coal deposits too cheaply.
Also on Thursday, the government announced a sweeping rollback of a rail fare hike, adding to concerns about the ruling coalition's standing.
European markets like France's CAC and Germany's DAX dropped nearly 1.5 per cent while Britain's FTSE was down 0.9 per cent after German's Manufacturing PMI fell to four-month low at 48.1 in March.
Robert Parker, vice chairman of Credit Suisse Asset Management feels global investors specially are taking some profits and reducing risk.
"Weak Purchasing Managers Indices (PMI) gives very clear picture of moderate growth in Germany, but recessionary trends elsewhere in the euro zone," he reasoned.
Even HSBC's China Flash purchasing manager's Index declined at 48.1 in March - lowest level since November - as against 49.6 in February, due to slowdown in new orders. Shanghai was down just 0.1 per cent, which recovered in late trade.
About four shares declined for every share rising on the National Stock Exchange.
Total traded volume was more than Rs 2.28 lakh crore on Thursday, which was quite high as compared to Rs 1.78 lakh crore on Wednesday.
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