Sensex slumps over 500 points; Nifty breaks 7,800

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Indian equities fell further in late noon trades on Monday after the sharp slide in Chinese stocks and weak European cues sparked off a selling spree in the domestic markets with banks dragging the benchmark indices.

At 1:41pm, the S&P BSE Sensex was down 502 points at 25,659 and the Nifty50 was down 163 points at 7,799.

In the banking pack, ICICI Bank, HDFC Bank, SBI and Axis Bank were down 1.4%-2.6% each.

Index heavyweights, HDFC, Reliance Industries and Infosys were down 1.5%-3% each.

European shares were trading lower after the plunge in Chinese shares dampened sentiment. The FTSE-100 was down 2% while CAC-40 eased 2.7% and DAX dropped 3.4%.

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(updated at 1pm)

The downward journey of the Indian equity markets continue in the post noon trades, pushed down by banking and telecom shares. The weakness in the markets started after tracking the rout in the Asian markets, which was led by Chinese markets that slumped nearly 7% after the factory output contracted for the tenth straight month and the fall in yuan fuelled further concerns of the health of Chinese economy.

To added more woes to the local equities, India's December Nikkei Manufacturing PMI has come in at 49.1 versus 50.3 in November, lowest since August 2013. Manufacturing sector contracted for the first time in 25 months in December- sharpest in almost seven years.

At 1 pm, the S&P BSE Sensex tanked 450 points at 25,711 and Nifty50 slipped 145 points at 7,817.

Meanwhile, India's volatility index, India VIX surged 17% at 16.6875.

After the slump in the Chinese markets, the stock trading in China was suspended for the day.  The Chinese currency, Yuan dropped to a near five year low today after the factory output contracted.

Back home, the Indian currency also weakened by another 35 paise to trade at 66.48 against the greenback.

SECTORS & STOCKS

Currently, all the major indices are trading in red with BSE Bankex and Finance indices down by 2% each. BSE Telecom index was also down by 3%

Banks and financial shares came under intense pressure amid the weakness across the bourses. Bank Nifty has slumped 360 points, or 2.1%.  HDFC twins, Axis Bank, SBI, ICICI Bank have all dropped between 1.5-3% each.

Telecom is another sector that took a beating post the order from the Telecom Regulatory Authority of India (Trai) that has written to operators to ensure compliance with call drop regulations, effective January 1. However, service providers remain defiant and say compensation to subscribers will be paid only after court orders them to do so.  Bharti Airtel, Reliance Communication, Idea Cellular have all dropped between 4-7% each.

Auto shares are in focus post their December sales figures.

Tata Motors has skid 5.4% after the company posted a 4% decline in sales at 39,973 units for December as against 41,734 vehicles in December 2014.

Hero MotoCorp dipped 1.4% after the total two-wheeler sales of the company declined 5.13% to 4.99 lakh units in December 2015 over December 2014.

Bajaj Auto was trading flat after the company reported a marginal decline in total sales in December at 2,89,003 units as against 2,89,244 units during the same month last year.

However, Eicher Motors gained significantly in a weak market with 1.3% gains after the company announced 41% rise in total two-wheeler sales at 40,453 units in December 2015 which includes exports of 416 units.

Coal India was down nearly 1% as offtake for December 2015 was lower at 48.16 mt against a target of 49.46 mt.

Other notable losers are Lupin, BHEL, and Reliance Industries, all down between 1.5-3% each.  The sole gainer on the Sensex was HUL, up by1.1%


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