Sensex plunges 900 points, Nifty falls below 24,500

Benchmark equity indices BSE Sensex and NSE Nifty 50 ended Tuesday’s trading session in red, falling by over 1 per cent each.

Sensex crashed 930.55 points or 1.15 per cent to settle at 80,220.72. Nifty50 ended at 24,472.10, down 309 points or 1.25 per cent.

“The domestic benchmark indices opened flat, reflecting global cues. Nifty opened flat to positive, but the index then experienced severe selling pressure and concluded the day on a negative note at 24,472. The volatility index, INDIA VIX, rose 4.21 per cent to 14.34, indicating an increase in market volatility,” said Hrishikesh Yedve, AVP (Technical and Derivatives Research), Asit C Mehta Investment Intermediates Ltd.

One of the major reason behind the fall is that foreign institutional investors (FIIs) have been on a selling spree this month, setting a record for share offloading. According to experts, foreign investors are fleeing Indian equities to invest in relatively cheaper locations such as China and Hong Kong.