Sensex drops 275 points as global selloff continues

The BSE benchmark Sensex extended losses for the second session on Wednesday by declining over 250 points on heavy selling in IT, metal and auto stocks amid weak global cues.

Besides, fresh foreign fund outflows further hurt trading sentiments.

However, crude oil’s fall to one-year low in the global market on excess supply concerns, capped the fall in the indices.

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The 30-share, after rising briefly to 35,494.25 at the outset, quickly slipped into the negative terrain in line with a weak trend at other Asian markets and touched a low of 35,112.49.

However, it pared early losses on emergence of buying after a higher opening of European shares. The index closed 274.71 points, or 0.77 per cent, down at 35,199.80. The gauge had lost 300.37 points Tuesday.

Also, the broader NSE Nifty after shuttling between 10,562.35 and 10,671.30 points, finally settled 56.15 points, or 0.53 per cent down at 10,600.05.

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Sentiments took a hit after broader Asian markets weakened, following a renewed sell-off on Wall Street Tuesday as energy shares dropped after crude oil prices plunged to a 13-month low amid weak earnings and US-China trade disputes, fuelling worries about economic growth, brokers said.

Meanwhile, foreign institutional investors (FIIs) sold shares worth a net of Rs 753.17 crore, while domestic institutional investors (DIIs) offloaded shares worth Rs 44.06 crore Tuesday, as per provisional data.