(File photo)

NEW DELHI: Equity indices plunged on Tuesday with the benchmark BSE sensex sliding over 800 points tracking heavy selling in financial and auto stocks. Sensex and broader NSE Nifty started the week on a negative note amid US-China trade frictions. Weak core sector growth data and poor GDP (gross domestic product) number also dented investor sentiment.

The 30-share BSE index plunged 811 points or 2.17 per cent to 36,521 in late afternoon deals, while Nifty moved 235 points or 2.13 per cent lower to 10,788.

ICICI Bank, HDFC, Tata Steel, ONGC, Tata Motors, Mahindra and Mahindra and Axis Bank were among the top losers on sensex with their stocks down as much as 3.28 per cent.

On NSE, except for Nifty IT, all sub-indices were in red with Nifty PSU Bank and Bank sliding as much as 2.60 per cent.

According to traders, market sentiment took a hit on account of weak macroeconomic data releases and double-digit decline in auto sales in August as the sector continued to reel under one of the worst slowdowns in its history.

The United States began imposing 15 per cent tariffs on a variety of Chinese goods on Sunday and China began imposing new duties on US crude oil, the latest escalation in their trade war.

Although US President Donald Trump has said both sides would still meet for talks later this month, tensions have shown little sign of abating.

On the domestic front, growth of eight core industries dropped to 2.1 per cent in July, mainly due to contraction in coal, crude oil and natural gas production, according to a government data released on Monday.

The eight core sector industries -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- had expanded by 7.3 per cent in July last year.

The GDP data too has shown deceleration with the growth rate coming down to over six year low of 5 per cent in the first quarter of the current fiscal, mainly on account of sharp dip in manufacturing sector, which registered almost a flat growth of 0.6 per cent.

Markets remained closed on Monday on account of 'Ganesh Chaturthi'.

(With agency inputs)



In Video: Sensex dives over 600 points; Nifty below 10,850