Sensex dips 201 points as oil fears make a comeback

Mumbai :The Sensex went below the 28,000-mark by plunging over 201 points on Wednesday after funds and retail investors hit the sell button tracking a sluggish global trend due to tumbling oil prices.

Muted second quarterly earnings by some companies weighed too. Asia showed distinct weakness as there were fresh fears after reports emerged that Russia will not take part in a planned oil output cut by major producers. Overnight losses in the US on lower-than-expected earnings added to the anxiety.

The market fall continued for the second straight session as the 30-share index dropped 201.20 points, or 0.71%, to 27,890.22.

All sectoral indices led by banking, auto and FMCG, PSU and IT fell, with losses up to 1.33%. The gauge had lost 88 points in the previous session.

The NSE Nifty dropped 61.65 points, or 0.70%, to 8,629.65 in early deals.

Globally, Brent crude futures was down over 1%. Investors’ cautious approach ahead of October expiry in the derivatives segment on Thursday impacted trading.

Hong Kong’s Hang Seng was down 0.69% and Japan’s Nikkei shed 0.19%. The Shanghai Composite fell 0.39% in early trade today. The US Dow Jones Industrial Average ended down 0.30% on Tuesday.