Mumbai: Indian equity benchmark Nifty could not hold the 4700 mark and fell 2.6 per cent due to heavy selling in major sectors like oil & gas, banking, metal, capital goods and technology. Even the European markets, which were showing some recovery, drifted lower again - France's CAC, Germany's DAX and Britain's FTSE lost 0.5 per cent.
The 30-share BSE Sensex dropped 427 points to 15,639.14 and the 50-share NSE Nifty lost 126 points to 4,686.50 amid huge volumes. Total traded turnover was more than Rs 2.3 lakh crore.
Amit Gupta of ICICI Direct says, he is not surprised with this fall because the 4,750 level was very critical.
"If you look at stocks futures open interest, it was almost 23 per cent higher than the last time we visited 4,700 levels, hence, it was alarming sign for us. If you look at the short positions, the major amount in this series they have been rolled from the previous series to the current series. If you look at index futures, 53 per cent higher open interest we are sitting right now than the last time we visited 4700 levels. And the majority of it we had seen mostly into the Bank Nifty and then Nifty," Gupta explained.
From the oil & gas space, Reliance Industries and ONGC plunged 3 per cent each. In the financial space, ICICI Bank, HDFC Bank, HDFC and SBI were down 2-4.5 per cent.
Bharti Airtel and Jaiprakash Associates topped the selling list, falling 5 per cent each. From the capital goods space, BHEL and L&T tanked 4 per cent and 2.4 per cent, respectively.
Infosys, TCS, ITC, Wipro and Tata Motors among other large caps slipped 2-3 per cent. However, NTPC and Reliance Communications bucked the trend.
At 14:24 hours IST : Nifty reclaims 4700; European mkts recover too
The 30-share BSE Sensex recovered more than 200 points from day's low of 15,478.69 while the Nifty reclaimed its 4700 level as investors were slowly covering their shorts. European markets too turned flat after a fall of 1 per cent in initial trade, which was despite the Germany's weak manufacturing data. The Sensex dropped 347.36 points at 15718.06, and the Nifty fell 101.15 points to 4,711.20.
According to Alok Sama of Baer Capital, pressure on the rupee and cost of capital are two key concerns for the market. The Indian rupee was trading at 52.08 to the dollar versus 52.30 on Tuesday.
“I expect the rupee to touch 55 per dollar, and this will hurt the market because it is heavily dependent on capital inflows,” he said in an exclusive interview to CNBC-TV18.
Bharti Airtel and HDFC Bank, which were down over 5 per cent at one point of time, fell 4 per cent each.
Reliance Industries, Infosys, HDFC, ITC, ICICI Bank, TCS, ONGC, SBI, Tata Steel, Wipro and BHEL plummeted 2-3 per cent.
The broader indices were down 1.8 per cent as declining outnumbered advancing ones by 2062 to 684 on the BSE.
At 13:48 hours IST : Sensex down 350 pts; banks, oil & gas, tech, metals dive
Indian equities recovered from the day's low in the late afternoon trade. The 30-share BSE Sensex recovered nearly 200 points from its mid-afternoon lows to trade more than 350 points down. The Nifty was trading down 97 points. Reports suggest that one large European exchange traded fund was trying to cut its India exposure, which triggered larscale selling in the market. All-time low hit by rupee too dampened the sentiment of foreign investors. The Sensex was trading at 15,649.35 and the Nifty at 4,691.15. Meanwhile, European markets fell nearly a percent in the opening trade.
The Nifty November 4700 call witnessed sharp selling; it added 37 lakh shares in the open interest. The premium on this call fell quite steeply. However, Nifty November 4700 put saw a cut of 2.5 lakh shares in the open interest.
HDFC Bank and Bharti Airtel were the biggest losers among largecaps, falling 4.7 per cent and 5.5 per cent, respectively. Reliance Industries, Infosys, ICICI Bank, TCS, ONGC, SBI and BHEL were down 2-3.5 per cent.
Defensives too get sold today - ITC tumbled 2.65 per cent and HUL was down 0.9 per cent. Sun Pharma and Cipla were marginally lower.
However, Unitech and Reliance Communications bucked the trend - gained 5 per cent and 2.5 per cent, respectively. The Supreme Court granted bail to five corporates accused in 2G case, which included ex-managing director of Unitech, Sanjay Chandra and DB Realty's Vinod Goenka, and Anil Dhirubhai Ambani group's top executives Gautam Doshi, Hari Nair and Surendra Pipara were granted bail on Wednesday.
Volume was quite high - total traded turnover on both exchanges was more than Rs 1.8 lakh crore.
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