Incessant selling pressure because of a sell-off in China and weak cues in other global markets dragged down benchmark Sensex on Tuesday by 322.39 points to over one-month closing low of 27,797.01.
The NSE barometer Nifty also tanked 97.55 points to end below 8,400-mark at 8,340.70 amid investors booking profits for the third straight session. Shares of power, metal, capital goods, consumer durables, refinery, banking and auto sectors were among the major losers.
The overall market breadth was very weak as about 900 stocks rose while over 2,000 scrips fell.
Rising gold imports widened current account deficit to $10.1 billion or 2.1 per cent of GDP in July-September quarter of this fiscal, up from 1.2 per cent a year-ago, but experts are hopeful that it will remain in comfortable zone to be financed by growing capital inflows.
The BSE Sensex resumed higher at 28,134.22 and firmed up further to 28,157.53 on initial strong demand in view of good foreign capital inflows.
However, it declined afterwards to 27,763.82 before ending at over one-month low of 27,797.01, showing a sharp fall of 322.39 points or 1.15 per cent on fag-end selling. It has now lost 765.81 points, or 2.68 per cent, in last 3 days.
"Pressurized by weak global cues mainly from China, the domestic bourses slid further down and lost more than a percent in the end.
On the macro-front, India's CAD widened for the second quarter of the current financial year, added to selling pressure. Profit taking was widespread," said Jayant Manglik, President-retail distribution, Religare Securities.
The NSE 50-share Nifty also moved down further by 97.55 points or 1.16 per cent to 8,340.70.
Rupee moves down 5 paise at 61.88 against dollar
The Indian rupee on Tuesday weakened by 5 paise to end at 61.88 against the Greenback on sustained demand for the American currency from importers amid a broader sell-off in equities.
Widening current account deficit due to soaring gold imports mainly put pressure on Indian unit that fell for the second day, despite a weak dollar overseas.
At the Interbank Foreign Exchange (Forex), the domestic unit commenced lower at 61.89 compared to overnight closing level of 61.83. It hovered in a wide range owing to volatile domestic stocks between 61.9175 and 61.8475 before concluding at 61.88, showing a loss of 5 paise, or 0.08 per cent.
"Robust capital inflows along with profit-taking in US currency after its recent rally some what cushioned the rupee sentiment," a forex dealer said.
India's current account deficit (CAD) widened to $10.1 billion or 2.1 per cent of gross domestic product in the second quarter of this fiscal, up from 1.2 per cent a year-ago primarily led by a steep rise in gold imports.
Deficit concerns were to some extent offset by foreign capital inflows against the backdrop of plunging global oil and commodity prices, traders said.
Meanwhile, equities plummeted for the third straight day with Sensex and Nifty sliding over 1 per cent spooked by a rout in global financial markets and growth concerns.Foreign Portfolio Investors bought shares worth a massive Rs 4,984.60 crore on Monday as per provisional data.