The BSE benchmark Sensex today tumbled by over 213 points due to across-the-board selling, mainly in interest rate sensitive stocks, following weak Asian markets which fell after Moody's downgraded Japan's sovereign debt rating.
The 30-share index initially touched a high of 16,533.22 but reacted downwards on sluggish Asian trends and remained in the negative rest of the day to settle at 16,284.98 points, showing a fall of 213.49 points, or 1.29 per cent.
In last two straight sessions, it had gained 356.80 points, or 2.21 per cent.
Besides interest-rate related shares, metal and capital goods, IT counters suffered a heavy setback on selling ahead of the expiry of August contract tomorrow.
Moody's Investors Service's downgraded Japan's sovereign debt rating by one notch to AA3 from AA2 with a stable outlook, which provoked investors to book profits.
The 50-issue Nifty of the National Stock Exchange also dipped by 60 points or 1.21 per cent to 4,888.90 points.
Profit-booking in the current uncertain scenario and ahead of the expiry of the derivatives contract tomorrow also weighed on the market sentiment, brokers said.
Selling in heavyweights like SBI, L&T, Tata Steel, ICICI Bank, Tata Motors, Infosys Tech, Coal India, TCS and RIL mainly contributed to the Sensex fall, they said.
Interest rates related auto, banking and realty stocks bore the brunt of selling on concerns over the higher interest rates, they added.
Market is likely to be volatile tomorrow as it will be the last day of the August series derivatives expiry session, analysts said.
"Sensex declined led by metal, auto and banking stocks. The sentiment has dampened after Moody's downgraded Japan's credit rating by one notch and domestic political instability which was major setback on policy implementation," Motilal Oswal Securities' Associate Vice President Parag Doctor said.
"Investors seemed cautious as political turmoil continued for the present government. Even a positive opening in European markets was unable to change the sentiments," Bonanza Portfolio Senior Research Analyst Shanu Goel said.
Foreign Institutional Investors pulled out Rs 100.34 crore yesterday from equities, as per provisional data.
Among the Sensex stocks, Coal India fell the most by 4.61 per cent to Rs 373.85 on profit booking. The country's largest lender SBI fell by 3.53 per cent to Rs 1,992.15, while leading private lender ICICI Bank by 1.20 per cent to Rs 841.80.
Engineering major Larsen & Toubro fell by 2.17 per cent to Rs 1,557.90 and Tata Steel by 4.28 per cent to Rs 455.40.
Among IT stocks, which had seen sharp rally recently, TCS dropped by 1.71 per cent to Rs 962.75 and Infosys by 1.06 per cent to Rs 2,249.95. Wipro fell 1.05 per cent to Rs 329.65.
Auto major Tata Motors fell by 3.90 per cent to Rs 700.70 while car major Maruti by 3.69 per cent Rs 1,115.15 on BSE.
All the 13 sectoral indices closed with losses. The BSE-Auto dipped by 2.31 per cent, BSE-Metal by 2.26 per cent, Bankex by 1.64 per cent, BSE-CG by 1.42 per cent, BSE-PSU by 1.40 per cent and BSE-IT by 1.20 per cent.
The total market breadth at BSE turned negative as 1,528 stocks ended in the red while 1,313 that finished in the green. Total turnover was slightly low at Rs 2,204.92 crore from Rs 2,247.03 crore yesterday.
Sensex Snaps 2-Day Rally, Falls by Over 213 Points
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