Bloodbath in markets, Sensex nosedives over 850 points

Domestic stock markets started Thursday's session on a negative note, with the BSE benchmark Sensex cracking over 850 points in early session Thursday as the rupee hit another low amid weak global cues and fears of widening current account deficit.

The 50-share Nifty tumbled nearly 250 points to test the 10,600-mark. 

Reliance Industries and Eicher Motors were the biggest losers among Nifty50 stocks, sinking 6.5 per cent each.

HDFC Bank, TCS, Infosys, HDFC, ITC, Bajaj Finance, HUL, ICICI Bank, Bajaj Finserv and IndusInd Bank were down 1-4 percent while L&T, Bharti Infratel and Yes Bank gained more than 1 percent.

Meanwhile, international benchmark Brent crude breached the $86 per barrel level, nearing its four-year high.

Brokers said weakness was seen in most Asian markets as high US yield and good economic data led to fear that investors would move to the US, dampened trading sentiments here.

The rupee's plunge to a new record low of 73.72 against the dollar in early trade, too, weighed on investor mood.

Commerce and Industry Minister Suresh Prabhu will hold an inter-ministerial meeting later in the day to discuss trade deficit and its impact on rupee as well as ways to boost exports, an official told PTI. 

Representatives from the department of economic affairs, coal ministry, steel ministry, oil ministry and department of pharmaceuticals are expected to attend the meeting.

Foreign portfolio investors (FPIs) bought shares worth a net of Rs 1,550 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 1,402 crore Wednesday.

Elsewhere in Asia, Hong Kong's Hang Seng, Japan, Singapore and Taiwan were trading sharply lower by falling over 1 per cent.

The US Dow Jones Industrial Average, however, ended 0.20 per cent higher Wednesday. 

(With inputs from PTI)