The benchmark indices retreated sharply and snapped the two-day rally on the back of profit booking in heavyweights. Infrastructure, rate sensitives, commodities and telecom stocks witnessed huge selling pressure. The Sensex closed below the 11,000 mark while the Nifty slipped below the 3400 mark, though it touched the 3500 mark during the day.
Reliance Industries, ONGC, DLF, Bharti, SAIL, L&T, Reliance Communication, SBI, Tata Motors, BHEL and ICICI Bank were leading counters in this fall.
Broader indices followed the same trend and broke eight-day winning streak. Inflation was non-event of the day and global cues were mixed in trade today, so both haven't impacted our markets.
Incremental flows were negative in today's trade. Majority of selling pressure came in from domestic funds while local funds were booking profits across frontline stocks.
Individually, the 30-share BSE Sensex broke eight-day rally and closed at 10,947.40, down 337.33 points or 2.99%, after hitting day's low of 10,900.47. The 50-share NSE Nifty (broke two-day rally) touched an intraday low of 3354.20, before ending the day at 3369.50, down 3.29% or 114.65 points.
Rajat Bose, rajatkbose.com said, "I would watch the support level around 3,310 on the Nifty that support yesterday it held out. If that is broken then 3,270-3,240 should be a very strong support area. I don’t think this rally is going to taper off so easily, but I still classify it as a bear market rally."
Among the frontliners, Suzlon Energy fell 18.68%. Tata Motors, Reliance Infrastructure, DLF, Tata Steel, Unitech and Cairn India slipped 8-14%.
Broader indices - the BSE Midcap Index shut shop at 3,438.73, down 163.16 points or 4.53% and the Smallcap Index declined 4.72% or 194.46 points, to settle at 3,928.99. This sharp fall in indices kept market breadth in favour of declines; about 1054 shares advanced while 1941 shares declined. Nearly 100 shares remained unchanged.
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