MUMBAI: Government announcing a major relief to foreign investors may have revived Indian market from one- year lows today, but the benchmark BSE Sensex plunged heavily by 242.88 points to 25,453.56 on worries over economic slowdown in China and its impact on world growth.
Global equities were largely in the red as weak factory output data from China, Europe and the United States stoked fears of a slowing global growth.
Subdued domestic macro fundamentals with GDP growth slowing in the June quarter and easing Indian manufacturing PMI also cast a long shadow over sentiment.
Market was expected to react positively after the government yesterday decided not to retrospectively levy Minimum Alternate Tax (MAT) on capital gains made by Foreign Institutional Investors.
Shares did rise earlier in the day as value-buying in realty, FMCG, IT and teck segments was seen helping domestic indices to recover from the levels not seen since August 2014.
However, the rally was short-lived as fears that China-led global slowdown will hit emerging economies including India stifled new bets.
The BSE Sensex, which resumed higher at 25,891.95 advanced further to the day's high of 25,939.37.
However, on emergence of profit-booking it slipped into the negative zone and hit a low of 25,395.09 before settling 242.88 points or 0.95 percent down at 25,453.56 its lowest close since August 8, 2014 when it closed at 25,329.14.
On similar lines, the 50-share Nifty after recapturing the 7,800-mark in early trade to touch a high of 7,862.55, succumbed to selling pressure and cracked the 7,700-level to a low of 7,699.25 before settling at 68.85 points or 0.88 percent lower at 7,717.00.
BHEL was the worst Sensex performer by tumbling 5.10 percent, followed by M&M 3.56 percent.
Other losers included ONGC (3.55 pc), SBI (3.55 pc), Coal India (3.07 pc), NTPC (2.95 pc), HDFC (2.81 pc), Axis Bank (2.77 pc), HUL (2.55 pc), ICICI Bank (2.36 pc), Cipla (1.99 pc), Bajaj Auto (1.97 pc) and L&T (1.89 pc).
Bucking the trend, TCS, Tata Steel, ITC, RIL, Infosys, Lupin and GAIL surged up to 2.45 percent.
Among BSE sectoral indices, power suffered the most by losing (2.43 pc), followed by PSU (2.37 pc), bankex (1.81 pc), capital goods (1.69 pc), auto (1.37 pc) and metal (1.34 pc).
Meanwhile, foreign investors sold shares worth Rs 675.32 crore yesterday, as per provisional data.
