Market erases all gains, Nifty falls below 23,300
At close, the Sensex was down 422.59 points or 0.54% at 77,155.79, while the Nifty fell 168.60 points or 0.72% at 23,349.90.
Domestic equity benchmark BSE Sensex plummeted over 900 points in late afternoon trade Monday dragged by losses in index heavyweights HDFC Bank, L&T and Bajaj Finance, amid heavy selloff in global equities.
After plunging 907 points, the 30-share index was trading 755.87 points, or 1.91 per cent, lower at 38,757.52 at 1545 hours. Similarly, the broader Nifty sank 246.75 points, or 2.09 per cent, to 11,564.40.
Top losers in the Sensex pack included Bajaj Finance, ONGC, Hero MotoCorp, Maruti, L&T, NTPC, SBI, Tata Motors and Axis Bank, cracking up to 9 per cent.
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While, Yes Bank, HCL Tech, TCS, TechM, M&M and Infosys were among the gainers, rising up to 5 per cent.
In the previous session, the 30-share gauge finished 394.67 points, or 0.99 per cent, lower at 39,513.39, and the Nifty sank 135.60 points or 1.14 per cent, to 11,811.15, after the Union Budget proposal to raise public shareholding threshold fanned fears of oversupply of new papers in an already overbought market.
According to traders, higher tax incidence proposed in the Budget for foreign portfolio investors and high net worth individuals is also weighing on investor sentiment here.
On a net basis, foreign institutional investors sold equities worth Rs 89.38 crore, while domestic institutional investors purchased shares to the tune of Rs 275.63 crore, provisional data available with stock exchanges showed Friday.
Besides overhang from the Union Budget, domestic equities extended losses tracking a major selloff in global equities, traders said.
Other Asian markets opened significantly lower as hopes of steep cuts in interest rates by the US Federal Reserve faded after the world’s largest economy posted better-than-expected jobs data Friday.
Shanghai Composite Index plunged 2.58 per cent, Hang Seng 1.54 per cent, Nikkei 0.98 per cent and Kospi tumbled 2.20 per cent.
On the currency front, the Indian rupee depreciated 30 paise to 68.72 against the US dollar.
Meanwhile, the global oil benchmark Brent crude futures were trading 0.56 per cent higher at 64.58 per barrel.
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