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Sensex Slumps 461 Points, Nifty Ends Below 7,850

Sensex Slumps 461 Points, Nifty Ends Below 7,850

BSE Sensex and broader Nifty fell nearly 1.7 per cent on Thursday, tracking weak global markets after the Bank of Japan unexpectedly chose not to expand its monetary stimulus.

Analysts warned that Indian markets appeared to be cooling down after a rally that has sent the broader NSE index up more than 10 per cent since the start of March.

"Derivative expiry and Bank of Japan's move is what led to the downtick today," said Hemen Kapadia, senior vice president at KR Choksey Securities in Mumbai.

"Nifty is stretched and overbought at current levels and I think it's going to stagnate here."

The Sensex ended 461 points lower at 25,603 while Nifty settled at 7,847, down 132 points. 

If Nifty slides below 7,800 levels, there could be further weakness in markets, said Anil Manghnani of Modern Shares & Stock Brokers.

Shares of HCL Technologies lost 4.5 per cent after the company reported March quarter earnings that were below analysts' estimates.

Maruti Suzuki India shares dropped 2.8 per cent as a rise of the Japanese yen directly affects the margins of India's largest passenger vehicle maker by 15-20 basis points. Bank of Japan's monetary policy inaction sent the country's currency yen surging against major currencies. 

Yes Bank Ltd shares rose 3 per cent after the company reported better-than-expected March quarter net profit.

Japan's Nikkei fell more than 3.5 per cent while major European markets were down over 1 per cent. (With Agency Inputs)