Sell-off in metal, telecom, power, capital goods stocks as well as in Reliance Industries and sharp cut in Satyam Computer has pushed the benchmark indices sharply lower. Downtrend in European markets and US futures also added some fuel to the negative sentiment.
The markets had started the day with gap up but immediately indices turned extermely volatile. In the second half of session, both the benchmark indices slipped into red following weak European markets and US futures. The Nifty went below 2950 in late trade.
The Sensex has touched an intraday low of 9,682.91, before closing the day at 9,715.29, down 261.69 points or 2.62% from previous close. In the beginning, it tested 10,000 mark.
The 50-share Nifty slipped 2.87% or 87.40 points, to settle at 2954.35, after touching an intraday low of 2943.50. It was hovering around 3000 mark for major part of the day, but profit booking pushed below the same level.
Midcap and small cap indices broke five days winning streak and closed weak. BSE Midcap Index slipped 108.04 points or 3.33% at 3,136.17 and Small Cap Index was down 98.09 points or 2.6% at 3,678.56.
Draggers in today's trade were Reliance Industries, Bharti Airtel, Reliance Communication, Satyam, BHEL, SBI, L&T and Reliance Infrastructure. However, ICICI Bank, Infosys, ONGC, HUL, HDFC Bank, Grasim and Wipro were on buyers' radar throughout the session.
Satyam Computer was the biggest loser, went down 30.22% or Rs 68.45 to close at Rs 158.05 on the BSE. The company had announced a deal to buy 100% stake in Maytas Properties and 51% stake in Maytas Infra for USD 1.6 billion from its internal accruals, but the deal had raised serious questions of corporate governance. Big foreign financial firms downgraded the stock and asked to switch from the stock to big IT players. Satyam's ADRs fell 55% on Tuesday but managed to recover half of the loss. Finally, the company took decision to call off the deal after all this fiasco.
Satyam Computer has touched a new 52-week low of Rs 153.80 and traded with huge volumes of 33,368,270 shares, a jump of 4,141.36% compared to its 5-day average of 786,736 shares.
Maytas Infra locked at 20% lower circuit at 388.25. There were pending sell orders of 7,151 shares, with no buyers available. It traded with volumes of 247,957 shares, a jump of 16,349.32% compared to its 5-day average of 1,507 shares.
ADAG stocks took huge beating on the bourses today. Reliance Communication, Reliance Infrastructure, Reliance Capital and Reliance Natural Resources tumbled 11.5-16%. Adlabs Films fell 9.25%.
BSE Realty Index underperformed other indices; fell 169.18 points or 7.36% to 2,129.21. Unitech and DLF lost 8.6-9.1%.
Huge selling was seen in telecom stocks as well. Reliance Communication plunged 13.36%, Idea Cellular and Bharti Airtel lost 4.7-7.6%.
Power stocks like Reliance Infrastructure slipped 13.63%. Suzlon Energy, Reliance Power, Tata Power and GMR Infra fell 3.7-9.4%. Power Index was down 81.07 points or 4.44% at 1,743.64.
Metal Index plunged 4.36% or 242.63 points, to settle at 5,323.44. SAIL, Jindal Saw, JSW Steel, Sterlite Inds, NALCO, Hindalco and Tata Steel fell 2.6-8.7%.
IT Index lost 94.65 points or 4.04% to 2,245.93, due to big fall in Satyam. TCS was down 0.76%. However, Infosys and Wipro gained 1.5%.
Capital Goods stocks like BHEL and L&T tumbled 3.3-4.37%. BSE Capital Goods Index tumbled 274.46 points or 3.86% to 6,835.42.
Profit booking was also seen in oil stocks like Reliance Industries plunged 2.64% and Reliance Petroleum fell 8.35%. Oil & Gas Index slumped 189.85 points or 2.9% at 6,364.34. However, ONGC gained 0.39%.
Healthcare Index lost 48.23 points or 1.64% at 2,891.22. Biocon, Sun Pharma, Wockhardt, Dr Reddys Labs and Ranbaxy Labs lost 2-7.5%.
FMCG Index closed with a loss of 16.59 points or 0.83% at 1,973.20. Tata Tea, ITC, United Spirits, Marico and GlaxoSmith Consumer tumbled 1.15-2.4%.
Auto stocks like Tata Motors and Hero Honda were losers. Index was down 19.92 points or 0.81% at 2,441.77. However, M&M, Bharat Forge and Maruti Suzuki were gainers.
Bankex fell marginally by 8 points to 5,249.38. SBI lost 2.98%. However, ICICI Bank and HDFC Bank rose 1.8-2.4%.
Among the midcap stocks, Maytas Infra, Thermax, Thomas Cook, Welspun Gujarat and Bombay Rayon slipped 13-20%.
In the small cap space, Prime Focus, Hind Dorr-Oliver, Deep Industries, ETC Networks and Astra Microwave plunged 11-19%.
Market breadth was weak due to negative broader indices; about 1074 shares advanced while 1681 shares declined. Nearly 445 shares remained unchanged.
Volumes were huge in today's trade; total traded turnover was at Rs 67,104.59 crore. This includes Rs 12,860.45 crore from NSE Cash segment, Rs 49,360.05 crore from NSE F&O and the balance Rs 4,884.09 crore from BSE cash segment.
On the global front, European markets were trading weak, fell around 1.5% each during the day. FTSE was down 8.19 points to 4,300. CAC lost 16 points to 3,235 and DAX down 26 points to 4,703, at 4:42 hours IST.
US futures were also trading lower. The Dow Jones Futures was down 146 points at 8,768 and Nasdaq Futures fell 16 points at 1,225.
However, Asian markets closed higher. Hang Seng surged 2.18% and Jakarta up 1.57%. Nikkei, Straits Times, Taiwan and Kospi gained 0.5-0.71%. Shanghai was up just 0.09%.
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