India Sensex falls by over 2% as oil prices drop below $50 per barrel

Mumbai : The S&P BSE benchmark Sensex fell by over two percent to head towards their biggest daily fall in nearly three weeks.

The Sensex fell amidst all-round selling from operators following sharp fall in Asian markets and overnight steep fall in US bourses as oil prices continue its sustained fall.

Oil edged up on Tuesday, steadying after a 5 percent plunge in the previous session that saw prices touch fresh 5-1/2-year lows in an oversupplied market.

Worries about surplus oil supplies were fuelled by data showing output in Russia hit a post-Soviet-era high in 2014 and exports from OPEC`s second largest producer, Iraq, were the highest since 1980. Jitters over political uncertainty in Greece drove investors out of risk assets globally to safe-haven bonds.

Shares of Refinery, Realty, Auto, Capital Goods and Power declined sharply on heavy selling pressure.

The S&P BSE benchmark sensex resumed lower a 27,694.23 and dropped further to 27,330.47 before quoting at 27,376.67 at 1000hrs, showing a loss of 465.65 points or 1.67 percent from its last close.

The CNX 50-share Nifty also fell by 140.65 points of 1.68 percent to 8,237.75 at 1000hrs.

Major losers were Tata Motors (3.42 pct), ONGC (2.90 pct), SSLT (2.57 pct), BHEL (2.54 pct), Tata Steel (2.51 pct), Hindalco (2.39 pct) and Wipro (2.29 pct).

Asian markets were trading sharply lower after stocks on Wall Street declined overnight following the relentless fall in oil prices. Key indices in China, Japan, Hong Kong, Singapore, Taiwan, Singapore and South Korea were off 0.59 pct to 2.65 pct.

US stocks fell sharply yesterday with the S&P 500 extending losses into a fourth session, as energy companies reacted following the fall of oil price to its lowest since April 2009.

Meanwhile, foreign portfolio investors bought shares worth a net Rs 472 crore yesterday as per provisional data.

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