Markets Closing: Sensex, Nifty Crash By Over 2% On Weak Global Cues

Indian markets on expected lines opened sharply lower after the CPI inflation in the US moderated but at the same time topped expectations, with no relief to investor worries over the outlook for economy and interest rate. Early in the day, Nifty breached 16,000 levels and later the cut extended to over 2 percent. Bank Nifty felt even more pain with the correction extending to close to 3.5% towards the closing of the trading session.

At the close, Nifty settled with a deep cut of 2.22% or 359 points at 15,808 , while Sensex nosedived by 2.14% to 52,930. Broader markets too underperformed the headline indices with Nifty Midcap 100 cracking over .

Among Nifty sectoral indices, all indices traded in the red, with the maximum cut in the Nifty PSB followed by Nifty Metal and Nifty private bank.

In the subdued market, Wipro emerges as the top Nifty gainer with tad gains followed by Eicher Motors, HCL Tech and TCS, while laggards from the Nifty pack include stocks like Adani Ports, IndusInd Bank, Tata Steel, Hindalco and Tata Motors.

On the investment strategy to follow to buy the dip in the market currently, Saurabh Jain, Vice President - Research at SMC Global Securities is quoted as saying in a leading dailies, "Nifty 50 index has tumbled around 14.50 per cent from its highs of 18,604 levels and speculations are high about the market making its bottom in near term. However, it would be difficult to know exactly where and when the market would make make its bottom. So, one should invest 40 per cent of the surplus amount at current levels and keep on investing the rest in two parts after the fall of 7 per cent from now onwards."

European markets in line with the global peers are seen crashing down with German DAX and French CAC down by over 2%.

Meanwhile, rupee in trade today hit an all time low on rising dollar index and continued dollar outflows.