Sensex falls 3.6% in global sell-off

The impact of weak global markets persisted beyond opening trade and the BSE Sensex slumped sharply under acute selling pressure.

A host of other factors such as lower base metal prices and falling auto, banking and cement shares for the second successive day ripped apart the domestic bourses in early trade. However, there was some damage control witnessed later during the day.

Analysts said annual gross domestic product growth of 9.3 per cent in the January-March quarter strengthened the case for higher interest rates and may not turn the tide for falling Indian markets.

On the other hand, a steep drop on Wall Street on Tuesday pushed Sydney, Tokyo and Singapore down more than 2 per cent on Wednesday. Seoul, Hong Kong and Taipei were closed.

Foreign funds have dumped Indian shares worth $2.47 billion in 14 sessions to Tuesday, trimming net investment in Indian stocks this year to $2.38 billion.