Markets today went into a downspiral, with the benchmark Sensex crashing 587 points to close : 1 Sept 2015

 Markets today went into a downspiral, with the benchmark Sensex crashing 587 points to close at a one-year low of 25,696.44 owing to slower than expected GDP growth coupled with a global sell-off after a clutch of data showed China economy is in for more pain. The rupee recovered against the dollar though. In a significant development that could have far-reaching implications, the government today accepted the recommendation of the A P Shah committee that minimum alternate tax (MAT) should not be imposed on overseas portfolio investors retrospectively. Dismal numbers from the euro zone and Britain only added to the negative sentiment, brokers said. A sharp plunge in banking index amid margin worries over a likely race to reduce base rates contributed to the fall. The index loss was led by key stocks such as Axis Bank, ICICI Bank, SBI and RIL. The benchmark BSE Sensex cracked over 586 points, or 2.23 per cent, to end at 25,696.44, its lowest close since August 2014. The 50-share NSE Nifty too fell short of the 7,800-level by ending 185.45 points lower at 7,785.85. Selling was broad-based, which also spread to small-cap as well as mid-cap stocks, which fell up to 2.17 per cent.