Why the Sensex plunged over 453 points today

New Delhi: The BSE benchmark Sensex on Thursday  plunged over 453 points -- its biggest single session fall in one year -- to close at 33,149.35 on widespread selling in energy, banking, financial and FMCG stocks triggered by widening fiscal deficit concerns.

The country's fiscal deficit at the end of October hit 96.1 percent of the budget estimate for 2017- 18, mainly due to lower revenue realisation and rise in expenditure.

In absolute terms, the fiscal deficit -- the difference between expenditure and revenue -- was Rs 5.25 lakh crore during April-October of 2017-18, according to data of the Controller General of Accounts (CGA). During the same period of 2016-17, the deficit stood at 79.3 percent of the target.

Investors also kept their portfolios at a low ebb ahead of second quarter GDP numbers.

Squaring-up of positions by participants following end of November series contracts in the derivatives segment coupled with a weak trend in other Asian markets and rupee also weighed on sentiment.

Asian markets fell as investors ponder the longevity of the global equity bull run. In the US, the Dow Jones Industrial Average closed at a new high yesterday even as the Nasdaq Composite logged its worst day in three months as a selloff in megacap technology shares.

On the currency front, the rupee weakened by 15 paise to close at 64.46-47 against the US dollar from its previous close at 64.31-32.

The Sensex, after a gap down opening at 33,542.50, continued its slide to touch a low of 33,108.72. It finally settled 453.41 points or 1.35 per cent lower at 33,149.35.

This was its biggest single session fall since November 15 last year, when it had lost 514.19 points.

The broader NSE Nifty, after cracking below the key 10,300-mark, touched a low of 10,211.25, before finally ending 134.75 points, or 1.30 percent, down at 10,226.55.

This was its biggest single day fall since September 27 this year, when it had lost 135.75 points.

Sector-wise, the S&P BSE banking index declined by 548.72 points, followed by auto index by 250.23 points and metal index by 154.35 points.

On the other hand, the S&P BSE realty index was up by 26.43 points, consumer durables index by 13.48 points and telecom index by 5.98 points.

Major Sensex losers were: Kotak Bank, down 2.63 percent at Rs 1,000.20; State Bank of India, down 2.54 percent at Rs 320.45; Tata Motors (DVR), down 2.54 percent at Rs 232.30; Reliance Industries, down 2.42 percent at Rs 922.60; and Axis Bank, down 2.39 percent at Rs 536.

Major Sensex gainers were: Dr Reddy`s Lab, up 0.45 percent at Rs 2,286.35; and Bharti Airtel, up 0.23 percent at Rs 496.85.