Sensex loses 580 points in early trade


Mumbai, Aug 5The benchmark Sensex fell over 580 points on Monday over the sustained outflow of foreign funds and poor global investor sentiments.

Global markets came under further stress after China vowed to respond to the US tariffs it announced last week, sending a shockwave across world financial markets.

The Sensex was down 582.64 points to 36,535.58 during the early trade after it opened over 270 points lower at 36,842.17.

Following a sharp recovery on Friday after news that the government might intervene to arrest the fall in the markets, the Sensex closed at 37,118.22.

However, no such announcement has been made as yet.

At 9.44 a.m., the broader Nifty was trading 175.50 points or 1.60 percent lower at 10,821.85.

It opened 98 points lower at 10,895.80 from its Friday’s close of 10,997.35.

The super-rich tax has caused one of the worst ever outflow of foreign funds as it impacted the Foreign Portfolio Investors (FPIs).

Besides the Monetary Policy Committee (MPC) is widely expected to announce a rate cut amid a massive slow down in Indian economic activity.