Sensex falls below 20,000 amid global selloff

The BSE Sensex fell over 1 per cent or 200 points, while the broader Nifty dropped over 60 points on Tuesday tracking a sharp selloff across global markets. The Sensex slipped below the key 20,000 levels, while the Nifty traded below 5,950 in early trade. All sectors traded in the red led by high beta banking, metals and realty stocks. Safe havens such as IT and pharma stocks also came under selling pressure. Aluminium maker Hindalco, outsourcer HCL Tech and auto maker M&M were the top losers on the Nifty. 45 of the 50 stocks traded down on the Nifty benchmark. Among the gainers were defensives such as drugmakers Lupin and Cipla and FMCG major HUL. Tata Motors, which has seen sharp selloff over the last few days, was the top Nifty gainer, up 1.1 per cent. Traders blamed redemptions by foreign institutional investors for the selloff in equities over the last few days. FIIs, which pumped in $20 billion in India last year, have sold equities worth around Rs 4,000 crore in the cash market over the last six sessions as part of a slump in emerging markets. Although India is seen in a better position than other countries such as Turkey due to its improved current account deficit and foreign exchange reserves, the country is being hit nonetheless. Indian markets will thus continue to be beholden to global risk factors, including concerns about the Federal Reserve's withdrawal in monetary stimulus and an economic slowdown in China. The rupee also traded lower at 62.75 per dollar after closing at 62.56 on Monday. The currency has got some support as foreign bank are reportedly selling dollars for mobile phone operators bidding for spectrum, traders said. Global cues: An official Chinese manufacturing survey that showed factory output grew at a slower rate in January compared with December. The report released on the weekend followed a HSBC survey that showed an outright contraction in manufacturing. The sell-off in stock markets accelerated after an equivalent US survey showed an unexpected drop in January. Japan's Nikkei 225 stock average was down 2.5 percent at 14,253.23 and South Korea's Kospi shed 1.5 percent to 1,890.69. (With inputs from agencies)

Sensex falls below 20,000 amid global selloff

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