Markets witnessed sharp sell off for fifth consecutive trading session on the back of heavy selling from foreign investors, especially European investors. It seemed like bears become uncontrollable for bulls. Sensex and Nifty have touched new 2008 lows; Nifty slipped below 4200 and the Sensex below 14000 mark, the crucial levels. Heavy sell off in European markets also fueled to further weakness in the markets. Midcap and small cap stocks also hammered a lot.
It was a mild bounce back in opening trade after heavy sell off in last few sessions but that could not sustain for long. Markets had turned choppy and in the second half of session, it caught again in bears' grip. Last hour of session was very critical for the markets; heavy sell off has seen across sectors.
Reliance Industries was the only stock, which tried to hold back in the green and being supportive for the whole markets but crack in other heavyweights have put more selling pressure. The stock has touched a high of 2133.70 (5.5% over previous close) before closing the day at Rs 2066.20, up 2.18%.
Both indices closed at new 2008 lows. The Nifty ended below 4,200 for the first time since August 24, 2007, even the Sensex breached psychological level of 14000 in the last five minutes of trade but managed to back above that level at close. The Nifty touched a low 4156.10 before ending at 4191.10, down 1.76% or 75.3 points. The Sensex finished at 14,106.58, down 186.74 points or 1.31% after hitting an intraday low 13,991.31.
Turnover traded by the markets stood at Rs 87406.31 crore, which has been improving since last few sessions. This includes Rs 11760.63 crore from NSE Cash segment, Rs 70250.13 crore from NSE F&O and the balance Rs 5395.55 crore from BSE Cash segment.
Market breadth was weak; about 783 shares have advanced while 2064 shares declined. Nearly 280 shares have unchanged.
Amongst frontliners, NALCO was down -9.09%, Sun Pharma -6.77%, Tata Power -6.25%, HUL -5.37%, Tata Steel -4.60%, NTPC -3.92% and ONGC -3.61% while Suzlon Energy gained 5.09%, BHEL 2.85%, Ranbaxy Labs 2.33%, HDFC 2.28% and Reliance Ind 2.18%.
Metal Index has underperformed other indices, down 3.52% or 487.51 at 13,368.82 due to heavy selling in NALCO, Sterlite Ind, Tata Steel, Jindal Steel, Hindalco and Sesa Goa.
FMCG stocks remained under selling pressure through the day, which includes Marico, HUL, Dabur India, ITC, Nestle and Colgate. Index fell 2.54% at 2,146.63.
BSE IT Index plunged 2.17% at 4,141.51 on the back of weakness in Infosys, Tech Mahindra, Mphasis, Wipro, HCL Tech, TCS and Satyam.
Auto stocks like Bajaj Auto, Hind Motors, Hero Honda, M&M, Ashok Leyland, Maruti Suzuki and Tata Motors lost the road. Index was down 2.06% at 3,842.77.
Banking stocks like Allahabad Bank, Kotak Mahindra, HDFC Bank, Axis Bank, Oriental Bank and ICICI Bank were also draggers for the markets. Bankex slid by 130.92 points or 1.97% at 6,499.66.
Realty Index crashed by 1.72% at 5,098.44, which led by selling in Orbit Corporation, Mahindra Life, HDIL, Omaxe, Indiabulls Real and DLF.
Power stocks like Tata Power, Reliance Power, NTPC, Power Grid Corp, GVK Power, Torrent Power, GMR Infra and Reliance Infra lost ground. Index fell 1.64% at 2,398.09.
Capital Goods Index was down 157.41 points or 1.46% at 10,639.60 due to sell off in Siemens, Rel Ind Infra, Bharat Elec, L&T, BEML, Bharat Bijlee and Thermax. However, buying has seen in Suzlon Energy, BHEL and Alstom Projects.
Pharma stocks also butchered, which includes Wockhardt, Sun Pharma, Piramal Health, Orchid Chemical, Matrix Lab and Lupin. Index plunged 1.29% at 4,165.61. On the other hand, Panacea Biotech, Ranbaxy Labs, Cadila Health, Dr Reddy's Labs and Dishman Pharma have gained.
Oil & Gas Index ended with just 0.28% at 9,146.43. Selling has seen in GAIL, RNRL, ONGC, Petronet LNG, Cairn India, Essar Oil, IOC, BPCL and HPCL. However, Reliance Industries gained.
Midcap Index fell 1.76% or 102.49 points at 5,712.74 and the Small Cap Index down by 129.88 points or 1.82% at 7,006.42. Amongst midcap stocks, Educomp Sol, Spice Comm, Welspun Guj, Wockhardt, Phoenix Mills, Bajaj Holdings, Adhunik Metalik and BGR Energy slipped over 7%.
In the small cap segment, Simplex Project, Bliss GVS, Radico Khaitan, C and C Const, Surana Ind, Andhra Cemen, EIH Assoc Hotel, Mukta Arts and Kirloskar Pneum lost over 9%.
Most active counters on the bourses were Reliance Ind, Reliance Communication, L&T, Reliance Infrastructure, Reliance Petroleum and BHEL.
On the global front, Asian markets ended mixed. Shanghai was up 1.54%, Jakarta 0.11% while Taiwan Weighted fell -1.76%, Kospi -0.3%, Hang Seng -1.14% and Nikkei -0.06%. European markets crashed.