Sensex cracks over 300 points, Nifty slips below 8,200 amid weak global cues

The BSE benchmark Sensex crashed 300 points and the Nifty slipped below the 8200 mark in the opening trading session  on Tuesday.

As global cues dry up, domestic data and the acute cash crunch in the economy have become key drivers of the domestic market.

Government bonds (G-Secs) weakened on selling pressure from banks and corporates and the interbank call rates also finished lower due to lack of demand from borrowing banks amid ample liquidity in the banking system. The 6.97% G-Secs maturing in 2026 declined to Rs 101.7475 from Rs 102.2150 previously, while its yield moved up to 6.72% from 6.66%.

With government taking steps to improve the ease of doing business and attracting foreign investments, FDI inflows into the services sector jumped by over two and a half times to $5.28 billion in the April-September period of the current fiscal.