MUMBAI: Snapping its three-day rising streak, equity benchmark BSE Sensex slumped 318 points on Thursday as sluggish corporate earnings muted expectations of a swift pick-up in economic recovery.
Lacklustre global markets and a depreciating rupee further sapped investor appetite, traders said.
Moreover, the Asian Development Bank (ADB) lowered the growth forecast for India from 7.2 to 7 per cent for the current fiscal, mainly due to moderation in growth prospects for the advanced economies which could adversely affect tradable services.
The 30-share Sensex, which opened on the back foot, remained subdued throughout the session and finally closed at 38,897.46, down by 318.18 points or 0.81 per cent.
Similarly, the broader NSE Nifty cracked below the 11,600 mark, ending 90.60 points or 0.78 per cent lower at 11,596.90.
Yes Bank was the biggest loser in the Sensex pack, tumbling 12.85 per cent, after the company reported a massive 92.44 per cent slump in consolidated net profit for the June quarter.
ONGC, Tata Motors, M&M, Maruti, Vedanta, Bajaj Auto, TCS, SBI and HCL Tech lost up to 4.24 per cent.
On the other hand, HDFC was the top gainer, rallying 2.26 per cent, followed by Kotak Bank, HDFC Bank and ITC that rose up to 0.31 per cent.
"Indian equities sold off on disappointing earnings and concerns over the US-China trade war. Notably, South Korea and Indonesia cut rates and more rate cuts are likely coming in India and emerging markets.
"Indian markets lost almost a percent dragged by weak macros globally and poor earnings performance on the ground. All sector indices ended in the red with PSUs, Metals and Autos being the worst performers.
"However, foreign investors have been heavily investing in Indian debt markets as the yields remain at a steep premium to those offered in developed markets. Yield hungry foreign investors have bought Indian debt worth almost Rs 6,000 crore since Budget presented earlier this month," said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.
All sectoral indices ended in the red, with BSE auto, metal, energy, oil and gas, industrials, power, consumer durables and realty indices cracking up to 2.65 per cent.
The broader BSE midcap and smallcap indices plunged up to 1.23 per cent.
FMCG major Colgate-Palmolive India Ltd Thursday reported a 10.76 per cent decline in net profit at Rs 169.11 crore for the June quarter owing to lower growth in rural markets.
In a report, data analytics firm Nielsen said the FMCG sector in India will face a slowdown in 2019, impacted by a dip in demand, particularly in rural markets.
IT firm Mindtree had posted a 41.4 per cent drop in Q1 net profit Wednesday, while Wipro's profit rose 12.5 per cent, though revenue growth remained subdued.
On the global front, stock markets struggled as the protracted US-China trade conflict showed no signs of easing, while investors digested a slew of corporate results.
Elsewhere in Asia, Shanghai Composite Index ended 1.04 per cent lower, Hang Seng fell 0.46 per cent, Kospi 0.31 per cent and Nikkei dropped 1.97 per cent.
Bourses in Europe were also trading in the red in their respective early sessions.
Meanwhile, the Indian rupee depreciated 12 paise to 68.95 against the US dollar (intra-day).
The global oil benchmark Brent crude futures rose 0.33 per cent to USD 63.87 per barrel.
