(RTTNews.com) - Indian shares plunged in early trades on Wednesday, with investors indulging in some heavy selling almost across the board, amid mounting worries about global economic slowdown, trade tensions and political uncertainty in the U.S. on the back of a partial government shutdown.
Heavy selling on Wall Street on Monday amid anxiety about liquidity position in the U.S. banking system after Treasury Secretary Steven Mnuchin tweeted that he had spoken with the CEOs of the country's six biggest banks to assess the health of the banking system is also weighing on sentiment.
U.S. President Donald Trump's continuing attack on the Federal Reserve's policy stance appears to be hurting as well. In a recent tweet, Trump said "The only problem our economy has is the Fed. They don't have a feel for the market. The Fed is like a powerful golfer who can't score because he has no touch - he can't putt!"
The benchmark BSE Sensex is down 375.96 points, or 1.07 percent, at 35,094.19. The National Stock Exchange's Nifty50 is down 107.90 points, or 1.01 percent, at 10,555.60.
Mirroring widespread selling, all the sectoral indices are down in negative territory, with those tracking the movements of healthcare, information technology, automobile, bank, capital goods, realty and power stocks are down 1 to 1.7 percent.
Oil stocks are faring better thanks to falling crude oil prices. The Oil & Gas index is down just marginally. Shares of state-run oil marketing companies Hindustan Petroleum Corporation, BPCL and Indian Oil Corporation are gaining 0.6 to 1.4 percent.
However, other key stocks from the oil & gas space, Reliance Industries, ONGC, GAIL India, Indraprastha Gas and Oil India are down in negative territory, losing between 0.4 percent and 2 percent.
Yes Bank, Indiabulls Housing Finance, Sun Pharmaceutical Industries, Tata Motors and Kotak Mahindra Bank are down 2 to 4 percent.
Eicher Motors, Wipro, Tata Consultancy Services, Cipla, Bajaj Finance, Mahindra & Mahindra, IndusInd Bank and Tata Steel are declining by 1.5 to 2 percent.
Autoline Industries jumped about 6% in early trades after the company said that it has entered into Memorandum of Understanding with Poddar Habitat to transfer the land and buildings at Pune. The company said it will utilize the sale proceeds to settle the debt that has a charge on the immovable property and reduce overall debt exposure. The stock subsequently pared some gains, but still remains fairly high up in positive territory.
The rupee opened 26 paise up against the U.S. dollar, at 69.88, riding on crude oil's sharp plunge.
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