RTTNews - Broad-based sell-off in global markets on concerns about the pace of global economic recovery, worries about a slowdown in the domestic economy due to deficient monsoon rains and inadequate support from domestic funds to contour FII selling dragged the Indian market sharply lower below support levels on Monday.
Across Asia, China's Shanghai Composite index slumped 5.79% to 2,871, the lowest level in two months on renewed worries about government policy over a possible tightening of bank lending policies, while markets in Hong Kong, Japan and South Korea fell around 3% each.
European stocks saw a broad-based decline with capital-adequacy worries weighing on banks and U.S. stock futures retreated, falling nearly 2% on worries the steepest rally since the 1930s may have run ahead of the real economy.
Back home, selling was across the board and realty, metal, auto, oil/gas and banking stocks bore the brunt of the selling pressure. Sustained selling all through the day pulled down the benchmark BSE Sensex to 14,785, down 627 points or 4.07 and the S&P CNX Nifty plummeted 192 points or 4.20% to 4,388.
On the BSE, the small-cap index shed 3.13% and the mid-cap index moved down 3.90% and the market breadth was extremely negative, with 1930 losers versus 671 gainers, while 74 stocks closed unchanged.
DLF(down 7.75%), Hindalco(down 7.35%), Tata Steel(down 6.82%), Sterlite Industries(down 6.69%), Tata Motors(down 6.67%), Jaiprakash Associates(down 6.31%), Reliance Infrastructure(down 6.15%), Hero Honda Motors(down 5.92%) and ITC(down 5.56%) were some of the prominent decliners. All 30 Sensex stocks ended deep in the red.
Tata Steel plunged nearly 7% after its managing director B Muthuraman reportedly forecast difficult conditions to persist in the next two quarters. Other metal stocks such as Sterlite, Hindalco and NALCO tumbled after concerns about an economic recovery in the U.S. pulled down metal prices.
Realty stocks fell around 8% on an average, even as reports claimed that the finance ministry has finalized a interest subvention scheme for affordable housing which had been promised in the Union Budget.
Oil firms Reliance Industries, ONGC and Cairn India fell over 4% each after crude oil futures retreated further to a 2-week low in Asian trading on Monday on concerns about global energy demand.
BHEL ended down 0.83% despite reports that its Tiruchirappalli unit has set a target of Rs.10,000 crore turnover by the end of the current fiscal year. Religare Enterprises fell 2.25% after the company said that it is constantly on the lookout for opportunities in line with the company's ambitions of becoming a global leader in financial services sector.
Torrent Power lost 2.85% after it announced the commencement of operations from the third unit of 382.5-MW of SUGEN gas-based power plant. Aurobindo Pharma moved down 2.68% after it received board approval to acquire Hyderabad-based Trident Life Sciences for an undisclosed amount.
McNally Bharat Engineering Company plunged over 6% despite receiving a contract worth Rs.151 crore from BHEL.
Tata Chemicals plummeted 5.44% after its board passed a resolution to increase its stake in Rallis India to 45.2% from from 9.4%, by buying out the share of the other promoters at a price not exceeding Rs.850 per share. Rallis India also ended down 4.71%.
KSK Energy Ventures tumbled 4.29% after the company proposed to raise as much as Rs 2,000 crore by selling preferential shares. MIC Electronics fell 2.40% after its board approved raising funds from domestic and international markets.
Power sector stocks fell on reports the government will cap the sale price of electricity sold in the open market to prevent companies from making windfall gains while enjoying tax benefits. GVK Power, Neyveli Lignite Corporation, Power Grid Corporation of India and Reliance Power fell over 4% each.
Asian Paints edged down 0.83% after the Bombay High Court sanctioned the scheme of amalgamation of Technical Instruments Manufacturers (India), a wholly owned subsidiary, with the company.
Sugar stocks drifted lower on speculation about a rise in government's levy sugar quota to 20% from 10%. Bajaj Hindustan fell nearly 2%, Balrampur Chinni Mills tumbled 3%, Bannari Amman Sugars slumped 5.5%, Oudh Sugar and Ponni Sugars plunged over 4% each and Shree Renuka Sugars slumped 6%, but Sakthi Sugars and Thiru Arooran Sugars bucked the declining trend, rising over 1% each.
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