Mumbai: Further sell-off in Chinese stock market continued to give investors anxious moments as the benchmark BSE Sensex lost ground by 242 points to settle at 27,366.07, its lowest close in over two months.
The index at one point was down by over 450 points, tracking a massive sell-off in Asian markets after China PMI showed that factories shrank at the fastest pace in six and a half years, heightening concerns about the health of its economy.
The uncertainty over US Fed rate hike too kept sentiment fragile.
The rupee remained on a weak footing as it fell to a two-year low of 65.91 (intra-day), which led to heavy outflows by foreign investors.
This apart, simmering geopolitical tension between South and North Koreas and weakness in emerging market currencies complicated the scene.
The BSE Sensex after starting weak fell to the day's low of 27,131.44, before ending down 241.75 points, or 0.88 percent, at 27,366.07, its lowest closing since June 19.
At the fag end, it covered up on the back of buying after A P Shah panel on MAT recommended giving relief to foreign investors for the period prior to April 1, 2015.
The wider NSE Nifty went below the 8,300-mark, tumbling 72.80 points, or 0.87 percent, to 8,299.95.
Intra-day, it traded between 8,225.05 and 8,322.20.
"After a persistent selling, the markets edged lower as investors fretted over weakness in global stocks due to weak Chinese manufacturing data, which added to growing concerns over China's economic slowdown and slide in commodities prices," said Jayant Manglik, President, Retail Distribution, Religare Securities.
Foreign investors pulled out Rs 1,007.26 crore yesterday, exchange data showed.
Vedanta was the hardest hit (down 3.81 percent), followed by Bajaj Auto, Hero MotoCorp and GAIL.
Sectorally, realty, auto, capital goods, banking, power, oil & gas and metal ran up big losses.
On a weekly basis, the Sensex lost 701.24 points and the NSE Nifty 218.60 points.
Overseas, key indices in Japan, China, Hong Kong and Taiwan came off between 1.53 percent and 4.27 percent.
Broader markets such as mid-cap and small-cap indices also trended lower.
Out of 30-share index, 22 ended in the red.
"Going ahead, progress of monsoon rains, trend in global markets, investment by foreign portfolio investors (FPIs), the movement of the rupee against the dollar and crude oil price movement will dictate trend on bourses amid lack of any major trigger in the near term," added Manglik.
The market breadth turned sharply negative as 1,811 declined, 1,000 advanced while 94 remained unchanged.
The total turnover jumped to Rs 3,462.56 crore, from Rs 3,354.59 crore yesterday.
