Sensex loses 382 points as fears over NBFCs' liquidity return, Nifty falls to 10,453

Surrendering early gains, the benchmark Sensex on Wednesday fell 383 points to end below the 35,000-mark in highly volatile trade, breaking three sessions of gains as NBFC stocks tanked on fears investors will not roll over their positions in commercial papers issued by them.

The Sensex swung nearly 880 points both ways on alternate bouts of buying and selling during the session.

It finally ended 1.09% lower at 34,779 points. The Nifty too ended 131 points or 1.24% lower at 10,453.

The Sensex had risen nearly 1,161 points in the past three sessions on the back of unabated buying by domestic institutional investors (DIIs) and rebound in global equity markets.

NBFC stocks cracked with Dewan Housing falling 12.34%, Edelweiss Financial losing 9.99%, L&T Housing Finance (-8.03%) and Mahindra and Mahindra Financial Services (-7.74%) becoming top losers on the BSE midcap index.

On the Sensex, YES Bank (6.85%) , Adani Ports (5.62%) and Maruti (3.79%) were the top losers.

ITC (1.34%), Wipro (1.20%) and Infosys (1.16%) were the top Sensex.  gainers

The Reliance Industries (RIL) stock closed 1.27% or 14.75 points lower at 1148 points on the BSE. In the forex market, the rupee after showing strength in early session to quote at 73.37, was quoting 13 paise down at 73.61 against the dollar (intra-day) too had its shadow on equities.

Foreign institutional investors (FIIs) sold shares worth Rs 1,165.63 crore, while domestic institutional investors bought shares to the tune of Rs 1,059.44 crore on Tuesday, as per provisional data available on the BSE.

Stock exchanges will remain closed tomorrow on account of "Dussehra".

Global markets

Japan's benchmark Nikkei 225 jumped 1.3 percent to 22,841.12. The Kospi in South Korea advanced 1.0 percent to 2,167.51. The Shanghai Composite rose 0.6 percent to 2,561.61. Australia's S&P/ASX 200 gained 1.2 percent to 5,939.10. Shares were flat in Taiwan but rose in Thailand, Indonesia and Singapore. Markets in Hong Kong were closed for a holiday.

France's CAC 40 added 0.2 percent to 5,183.04 and Britain's FTSE 100 rose 0.3 percent to 7,078.53. Germany's DAX shed 0.3 percent to 11,744.76. U.S. shares were set to open lower as the Dow future contract dropped 0.2 percent to 25,744.00. The broader S&P 500 futures lost 0.1 percent to 2,813.80.