Mumbai: The market closed at 28-month low on Tuesday after it broke the important technical level of 4550. The fall in index heavyweights in the last hour of trade and even considering fall over 1000 points on Sensex since last week had investors running for cover.
Moreover, Tuesday's fall was despite not-so-bad global markets.
As far as levels are concerned, the Sensex fell 204.26 points, to close at 15,175.08. The Nifty touched an intra-day low of 4,531.15, before ending down 68.90 points at 4,544.20. Its August 21, 2009 closing level was 4,528.80.
It was clear that bears have taken over the Street and have set up camp for good. Experts are turning bearish on India as they feel that macro-economic and government policies can only trigger market now.
Gautam Shah, CMT, VP-Financial Services, JM Financial believes that the Nifty is likely to tank to 4,350-4,400 level as there is further weakness in the market. In an interview to CNBC-TV18, he said that pull backs are likely to fizzle out around 4800-4900 on Nifty. He is expecting the Sensex may find support at 14500.
All sectoral indices slipped barring defensive sector FMCG. Capital goods and metals stocks got slaughtered quite badly; respective indices fell 3.5 per cent each. The BSE Realty, Power, Auto and Bank indices were down 1.7-2.7 per cent.
Shares of capital goods major L&T fell below the Rs 1,000 mark for the first time since May 2009; closed down 5.14 per cent at Rs 979.10; it crashed 25 per cent in last 15 days. BHEL showed some recovery in the late trade, which lost 1.2 per cent.
Index heavyweights Reliance Industries and SBI plunged 3 per cent each. Shares of Jaiprakash Associates topped the selling list, falling over 7 per cent.
Shares of telecom major Bharti Airtel plummeted 4 per cent. Among others, Tata Steel, Hero Motocorp, JSPL, Tata Power, NTPC and Hindalco were down 3.5-5 per cent. Tata Motors slipped nearly 3 per cent.
However, HDFC Bank and ONGC outperformed others among largecaps, rising 2 per cent each. ITC and HDFC gained 0.7-1 per cent.
Declining shares outnumbered advancing by the ratio of 2:1 on the BSE. The BSE Midcap Index was down 1.9 per cent and Smallcap down 1.5 per cent.
On the global front, European markets were mixed at the time of closing of Indian equities. Asian markets too ended mixed.
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