Sensex tanks over 626 points, RIL share drops most in 9 months

The BSE benchmark Sensex cracked over 626 points in the early session on Thursday as the rupee hit another low amid selloffs in global equities and fears of widening Current Account Deficit. The international benchmark Brent crude breached the $86 per barrel level on Wednesday, only to fall 44 cents on Thursday to $85.85 per barrel, its four-year high since November 2014. According to Bloomberg, Asian stocks and currencies also sank after a spike in US treasury yields tested investors' nerves for equity valuations as Federal Reserve monetary tightening rolls on.

The BSE 30-share barometer tumbled 626.79 points, or 1.74 percent, to 35,349.34 in early trade with most of the sectoral indices trading in the negative zone. The laggards include Reliance Industries, Hero MotoCorp, Maruti Suzuki, Bharti Airtel, HDFC, Infosys, Coal India, SBI, HDFC Bank, M&M, IndusInd Bank, Adani Ports, Axis Bank, NTPC, and PowerGrid, falling up to 4.75 percent.

The shares of Reliance Industries fell as many as 55 points or 4.61 percent, its highest in the past nine months. The share opened 16 points below the previous close of Rs 1205.10 on Thursday morning, only to fall to 1144.25 at 10.35am.

The gauge had lost nearly 550 points in the previous session on Wednesday. The NSE Nifty index too fell 198.30 points, or 1.83 percent, to 10,659.95. Brokers said weakness was seen in most Asian markets as high US yield and good economic data led to fear that investors would move to the US, dampened trading sentiments here.

Meanwhile, shares of Anil Ambani-led Reliance Communications jumped 6.25 percent to Rs 12.25 after it claimed the telecom tribunal has allowed it to complete its planned spectrum sale, the proceeds from which will be used to pay Ericsson India and Reliance Infratel (RITL) minority investors.

The rupee's plunge to a new record low of 73.77 against the dollar by falling 44 paise in early trade, too, weighed on investor mood. Commerce and Industry Minister Suresh Prabhu will hold an inter-ministerial meeting later in the day to discuss trade deficit and its impact on rupee as well as ways to boost exports, an official told PTI.

Representatives from the department of economic affairs, coal ministry, steel ministry, oil ministry and department of pharmaceuticals are expected to attend the meeting. Foreign portfolio investors (FPIs) bought shares worth a net of Rs 1,550 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 1,402 crore Wednesday. Elsewhere in Asia, Hong Kong's Hang Seng, Japan, Singapore, and Taiwan were trading sharply lower by falling over 1 percent. The US Dow Jones Industrial Average, however, ended 0.20 percent higher Wednesday.