Sensex plummets 587 points to over 1-year low on slowing growth

Indian market lost ground on Tuesday again as the benchmark BSE Sensex plummeted 587 points to close at over one-year low of 25,696.44 on intensified selling triggered by weak domestic and global macroeconomic data.

The Indian market lost ground on Tuesday again as the benchmark BSE Sensex plummeted 587 points to close at over one-year low of 25,696.44 on intensified selling triggered by weak domestic and global macroeconomic data.

Government data, on Monday, revealed domestic growth had slowed down to 7% in June quarter, down from 7.5% in the previous quarter. Meanwhile, a private survey claimed, on Tuesday, that Chinese factory output shrank to a three-year low.

Consequently, NSE Nifty also slipped below the 7,800-mark by tumbling 185.45 points or 2.33% at 7,785.85.

The market witnessed all-round heavy selling in banking, metal, realty, capital goods, PSU, auto, consumer durables, oil & gas, power, FMCG, healthcare and IT stocks.

The concerns of a Chinese economy and a possible rate hike from US Fed kept the markets around the globe under pressure.

Shanghai Composite dived 1.23% after China's statistics bureau said its Purchasing Managers' Index (PMI) of manufacturing activity came in at 49.7 last month, its lowest since August 2012.

"Sell-off was mainly triggered by the banks, especially PSU banks, on raising the concerns of pressure on their margins," said Gaurav Jain, director at Hem Securities.

Both the indices -- BSE Sensex and NSE Nifty -- are at their lowest since August 2014.

As many as 29 out of 30 Sensex scrips closed in the red, with the biggest loser Axis Bank falling by 5.24%, followed by Hindalco 5.18%.

Sun Pharma was the lone gainer, rising 0.34%.

In tandem with overall trends, the BSE small-cap and mid-cap indices lost 2.17 and 1.96% respectively.

Japan's Nikkei led an Asian share slump by falling 3.84%, while Hong Kong's Hang Seng plunged 2.24%.

European markets too sank in their opening trade.