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Sensex sinks 587 pts as stimulus hopes dim; Yes Bank dives 14 pc

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By PTI Updated: Aug 22, 2019 9:04 pm
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Mumbai, Aug. 22 (PTI): Equity markets closed deep in the red on Thursday after top government officials virtually ruled out a stimulus package for slowdown-hit sectors, triggering another round of selling in banking, auto and metal stocks.

A weakening rupee, which hit its lowest level in eight months, and lacklustre global cues further weighed on investor sentiment, traders said.

The 30-share BSE Sensex sank 587.44 points, or 1.59 per cent, to finish at 36,472.93. The broader NSE Nifty slumped 177.35 points, or 1.62 per cent, to 10,741.35.

Both the key indices closed lower for the third straight session.

Chief Economic Adviser Krishnamurthy Subramanian on Thursday said using taxpayers’ money to bail out companies going through a ‘sunset’ phase will create moral hazards and such a step is an anathema to the market economy.

Power Secretary Subhash Chandra Garg also said low interest rates and availability of credit to private sector are better tools than a fiscal stimulus.

The comments have dashed hopes of some sort of a stimulus package from the government to boost growth and revive flagging consumer sentiment, analysts said.

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By PTI Updated: Aug 22, 2019 9:04:25 pm