According to Richard Harris of Quam Asset Management, this is because of poor global economic indicators. “I think there is quite a bit of concern about the global economy, especially in Europe and it may look to the US a bit later on,” he said.
European markets like France's CAC, Germany's DAX and Britain's FTSE were down 1-1.5%. The Dow Jones futures slipped 105 points and Nasdaq futures dropped 29 points.
All sectoral indices were in the bears' grip barring FMCG and realty. Technology and banking stocks were the main draggers in today's trade with respective indices falling 3%. Metal Index too lost 1.65%.
Among largecaps, TCS, Infosys, SBI, ICICI Bank, HDFC, Wipro, Tata Motors, Sterlite, JSPL and PNB tumbled 3-4%. Axis Bank and HCL Tech were biggest losers with falling 5.5% each.
Heavyweight Reliance Industries, second top valued stock by market cap since yesterday, declined 1.7%. ITC and L&T were down over 0.5%.
However, DLF shot up over 5.5% on the back of short covering. ONGC, M&M, HUL, Hero MotoCorp, Reliance Communications, ACC and Jaiprakash Associates gained 0.5-2%.
Weak European cues lop 200 points off Sensex
The BSE benchmark Sensex shed about 250 points in the afternoon trade following 1% fall in European markets. The Nifty was trading way below the 5,000-mark led by cut in 40 stocks.
Even broader indices were following the same trend with BSE Midcap and Smallcap slipping 1.6% each. Major sectors like the BSE IT, Bank, Metal and Auto indices were down 3.8%, 2.8%, 1.9% and 1.2%, respectively.
The 30-share BSE Sensex was trading at 16,590, down 250 points and the 50-share NSE Nifty lost 77 points to 4,979.
Largecaps like TCS, Infosys, ICICI Bank, Wipro, SBI, Axis Bank, JSPL, Tata Motors, Sterlite, Hindalco and PNB plunged 2.5-5%. HCL Tech was the top loser, tumbling 6%.
However, DLF and Reliance Communications remained on buyers' radar by rising 3% and 2%, respectively. ONGC, HUL, Hero MotoCorp and ITC were other gainers.
Midcaps like GTL, Kwality Dairy, Usha Martin, Anant Raj Inds and Page Industries gained 2-7% while Educomp Solutions, Arvind, Prestige Estate, Bajaj Electrical and Syndicate Bank lost 6-9%.
In the smallcap space, Kirloskar Brothers, Swan Energy, R M Mohite, Unisys Software and Kama Holdings jumped 3-3.5%. However, Pradip Oversea, Clarus Finance, Den Networks, Jai Balaji and TV TodayNetwork slipped 9-13%.
At 11:48 hours IST : Rate hike fears grip market, Nifty struggles at 5,000
Panic selling in rate sensitive stocks have pushed Nifty below the psychological 5,000-mark. The 50-share NSE Nifty slipped 61 points to 4,995 and the 30-share BSE Sensex dropped 198 points to 16,642. Broader indices too declined 1%.
Nilesh Shah, MD and CEO, Envision Capital is worried that India’s inflationary pressures and macro-economic problems may be a market mood dampener. Inflation eased to 8-month low in July but there is a growing fear that the Reserve Bank of India may hike rate again in its credit policy review on September 16.
Major private banks like ICICI Bank and Axis Bank fell 3.6% each. SBI, HDFC, PNB, Kotak Mahindra Bank and IDFC were down 1.5-3%.
The BSE IT Index was down 3.5% and Bankex down over 2%.
From the technology pack, TCS, Infosys, HCL Tech and Wipro tumbled 3-4.5%.
Auto stocks like Tata Motors and Bajaj Auto fell 2-3%. M&M and Marut declined 0.4-0.8% while Hero MotoCorp gained nearly 1%.
In the metal space, Sterlite, JSPL, Hindalco and Tata Steel lost 1.5-3.5%. Reliance Industries and L&T too were on sellers' radar.
However, ONGC and Bharti Airtel gained 0.7% each. Reliance Communications and DLF were major gainers with rising 3% each.
ITC, NTPC, HUL, BHEL and Cairn India were marginally in the green.
Asian markets like Shanghai, Nikkei, Kospi and Taiwan were down 1-1.7%. Hang Seng fell 0.5%.
At 10:39 hours IST : Nifty tests 5K on Asia sell-off; banks, IT under pressure
Fresh shorts build up in banks and technology sent the NSE benchmark Nifty shivering and dragged it below the 5,000-mark. Even Asian markets have slid further - Kospi, Taiwan and Nikkei were down 1-2.5%. Dow Jones futures too declined 75 points.
The 30-share BSE Sensex fell 211 points to 16,629 and the 50-share NSE Nifty slipped 63 points to 4,993. Market breadth was negative for the third consecutive session with 3 shares declining for every one share advancing.
ICICI Bank crashed 4.5% with taking loss of over 8% in two days. Axis Bank and PNB were down 4%. PNB, HDFC, SBI and IDFC lost 2-3%.
In the technology space, TCS, Infosys, Wipro and HCL Tech were down 2-3%. Heavyweights Reliance Industries and L&T lost 0.7% each.
However, buying continued in ONGC, DLF, HUL, ITC, Reliance Communications, Hero MotoCorp and Ranbaxy Labs though they slipped from day's high.
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