Mumbai: Forget where the benchmark indices Nifty and Sensex closed on Tuesday; they won't tell you anything about the carnage witnessed in mid and small cap stocks.
Broader indices took huge beating as compared to benchmarks with the BSE Midcap and Smallcap indices losing around 2 per cent, led by fund based selling in infrastructure stocks.
The 30-share BSE Sensex fell 75 points, to close at 16,765 and the 50-share NSE Nifty lost 37 points, to end at 5,036.
Indian equities were looking for some recovery following positive US cues in the morning trade with the Sensex beginning above the 17,000 mark but this was cut short in the between. Benchmarks shaved off all their early gains in the last couple of hours of trade - especially after European markets' opening.
France's CAC, Germany's DAX and Britain's FTSE were down 1-2 per cent ahead of meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel today for some solution to control European debt crisis. Experts feel that introduction of euro bonds may be on their cards. Even Dow Jones and Nasdaq futures fell close to 1 per cent, which is pointing negative opening for the US markets.
Equity benchmarks slipped into the red on the back of weak cues from European markets. The 30-share BSE Sensex shed more than 361 points from day's high of 17,035.49, as investors have been selling on every rise.
European markets like France's CAC, Germany's DAX and Britain's FTSE declined 1-2 per cent. US futures Dow Jones lost nearly 100 points.
Back home, the 30-share BSE Sensex was trading at 16,678, down 161 points and the 50-share NSE Nifty fell 55 points to 5,018. The broader indices slipped 2 per cent.
Anil Dhirubhai Ambani Group's stocks took huge beating. Reliance Communications was the biggest loser, falling 8.5 per cent. Reliance Capital, Reliance Infrastructure and Reliance Power were down 4-6 per cent.
Jaiprakash Associates was the second top loser on Nifty, losing 8 per cent. SAIL was down more than 5 per cent.
DLF plunged nearly 6 per cent as CCI imposed a penalty of around Rs 600 crore on the company for abuse of dominance.
Heavyweights HDFC, ONGC, HDFC Bank and L&T were down 1.5-3.5 per cent.
Infrastructure stocks like IRB Infrastructure, GMR Infra, GVK Power and Lanco Infratech tumbled 4-6 per cent. IVRCL Infra crashed 17 per cent.
About 1119 shares declined as against 322 shares advanced on National Stock Exchange.
Indian equities was trading flat after erasing early gains. The BSE realty index underperformed the other sectoral indices, as it was down nearly 4 per cent. Selling pressure was also seen in metal, auto, bank and pharma stocks.
The broader indices midcap and smallcap were down over 1 per cent each. Stocks like ICICI Bank, HDFC Bank, HDFC, SAIL and DLF were major laggards.
The Sensex was down 5.73 points or 0.03 per cent at 16833.90, and the Nifty was down 6.05 points or 0.12 per cent at 5066.90.
About 926 shares advanced, 1834 shares declined, and 911 shares remain unchanged.
Sandeep Shah, CEO of Sampriti Capital, said that the market is likely to see a pullback rally. According to Shah, it may touch 5,400-5,600 over the next few weeks if government achieves some progress on the policy reform front.
Top losers on the Sensex were Jaiprakash Associates at Rs 58.30 (down 5.89 per cent) DLF at Rs 191.70 (down 4.58 per cent), Hindalco at Rs 145 (down 3.88 per cent), HDFC at Rs 653.40 (down 2.48 per cent) and Cipla at Rs 287 (down 2.13 per cent).
Refinery major HPCL was trading at Rs 374.40 down 2.56 per cent from its previous close of Rs 384.25.
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