Sensex plunges 324 points to end at 38,277, Nifty also drops by 100 points

The benchmark BSE Sensex recovered over 200 points in the early session on Tuesday but plunged by 324 points in the end at 38,276.63. Similarly, the broader NSE Nifty was up 38.70 points in morning but ended on a negative note after dropping 100.35 points at 11,497.90.

Top gainers in early session were Vedanta, Coal India, Hero MotoCorp, TCS, SBI, Tata Steel, Axis Bank, PowerGrid, Yes Bank, Tata Motors, HUL, ICICI Bank, HDFC Bank and Infosys, rising up to 1.83 per cent.On the other hand, IndusInd Bank, ONGC, RIL, Sun Pharma, HCL Tech and Bharti Airtel fell up to 1.92 per cent.

In the previous session on Monday, the BSE bourse settled at 38,600.34, down 362.92 points or 0.93 per cent. The broader NSE Nifty ended the day at 11,598.25, losing 114 points or 0.97 per cent.According to traders, banking and IT stocks lifted investor sentiment despite choppy cues from other global markets.

In the Sensex pack, HUL, L&T, PowerGrid, Infosys, ONGC and Bajaj Auto ended up to 1.37 per cent higher.

“Indian market has been on a shaky ground for the past couple of days driven by ambiguity associated with the US-China trade negotiations and less-than-inspiring ongoing corporate earnings season,” said Jagannadham Thunuguntla, Senior VP and Head of Research (Wealth),  Centrum Broking.

Global markets have been rattled by the concerns over the health of the world economy ever since US President Donald Trump on Sunday threatened to hike tariffs on USD 200 billion worth of Chinese goods.

Meanwhile, the head of the International Monetary Fund (IMF) said fresh trade tensions between the US and China were the main threat to the world economy, adding that recent “rumours and tweets” made an agreement between the countries less likely.

Chinese bourses, however, recovered with Shanghai Composite Index ending in the green. Equities in Japan and Korea closed in the red.

European stocks were also trading lower in early trade. The Indian rupee was trading flat at 69.39 against the US dollar intra-day. Global benchmark Brent crude was trading 0.74 per cent lower at USD 70.71 per barrel.