Sensex Slumps 700 Points On Capital Outflow Fears; Nifty Ends Below 8,300

(RTTNews) - Indian shares tumbled on Friday and the rupee hit an 11-week low against the dollar, as soaring U.S. bond yields on expectations of higher inflation and interest rates in the U.S. stoked worries about capital outflows from the region.

Investors also pondered the social, political and economic implications of the currency crackdown in the near term, as banks struggled to handle panicked customers desperate to finally get some cash in their pockets or exchange their old currency notes.

The benchmark S&P BSE Sensex ended the session down 698.86 points or 2.54 percent at 26,818.82. The broader CNX Nifty index dropped 229.45 points or 2.69 percent to 8,296.30, with banking, realty, auto and consumer durable stocks bearing the brunt of the selling.

SBI retreated 2.6 percent after its Q2 profit fell 35 percent from last year due to higher provisions against bad loans. Axis Bank, PNB, Bank of Baroda, ICICI Bank and Yes Bank lost 2-6 percent.

Sun Pharma shares rallied 3.7 percent after the company's quarterly profit nearly doubled from last year, helped by strong revenue growth in the U.S.