Panic grips market on rising dollar index, Sensex tumbles 322 points

Sensex shed 300 points and slumps below the psychological 26,000-level while Nifty crashed below the key 8,000-mark due to heavy selling pressure amid mixed Asian cues.

Market Expert, Avinash Gorakshakar explaining the market tumble said, "Market fall is due to panic build on sharp fall in re-currency rising dollar index and general negative sentiment due to demonitisation." 

Barring IT and Teck, sell-off was seen in most of the sectors led by realty, financials, banks, auto, industrials, basic materials, capital goods, consumer durables, FMCG,metal, power, utilities and healthcare. Uncertainty reverted at stock momentum on sustained capital outflows in the midst of US interest rate hike worries and cash crunch over government demonetisation drive to curb black money hovered the sentiment.

The 30-share Sensex, resumed higher at 26,246.70 and hovered in a range of 26,270.28 and 25,798.62 before quoting 25,828.13 at 1100 hours, showing a drop of 322.11 points or1.23 per cent from its last close. The NSE 50-share Nifty was also fell 111.45 points or 1.38 per cent to 7,962.65 at 1100 hours.

Major losers were, SBIN 3.74 per cent, Tata Steel 3.69 per cent, Adani Ports 3.26 per cent, M&M 3.03 per cent, HDFC2.39 per cent and Tata Motors 2.23 per cent. Meanwhile, foreign portfolio investors (FPIs) soldshares worth a net Rs 926.32 crs last Friday, as per provisional data released by the stock exchanges. In overseas markets, Asian markets were trading mixed.US stock market finished lower last Friday, but higher for theweek as Wall Street heads into a holiday-shortened week whenthe focus will be on a slew of economic data and freshscrutiny of a suddenly surging US dollar and rising interest rates.