Market crumbles under selling storm; Nifty hits 4-month low
Mumbai: Market reeled under intense panic selling for the second consecutive day with the benchmark CNX Nifty tanking by nearly 100 points to end at a fresh four- month low on the National Stock Exchange (NSE) Thursday.
Concerns over scaling back reform process in the backdrop of prolonged domestic political uncertainty and slowdown in foreign fund flows amid deteriorating economic outlook forced anxious investors to off-load shares heavily.
Weak global environment over the outbreak of another crisis in Europe and developments in the Korean Peninsula also added to pressure in the market.
Selling was so strong and widespread that all key sectoral indices finished in the red, spearheaded by FMCG, financials, technology, energy, infra, metal and pharma.
The 50-share NSE benchmark has lost more than 173 points in the past two trading sessions.
After a sharp gap-down opening, selling continued unabated through the day. Breaking key technical support levels in last hour of trading created some amount of panic in the market resulting in heavy liquidation with the Nifty sliding below 5,600 for the first time since Nov 23, 2012.
The Nifty tanked 98.15 points, or 1.73 percent, to end at 5,574.75 after hitting intra-day low of 5,565.65.
Among the Nifty laggards, UltraTech slumped 6.45 percent, JP Associates 6.37 percent, HCL Tech 4.49 percent, Reliance Infra 4.12 percent, DLF 3.96 percent, Tata Steel 3.76 percent, Indus Bank 3.47 percent, Sesa Goa 3.44 percent and HeroMotoCop 3.03 percent.
The notable gainers which managed to withstand the selling storm included Coal India, Dr Reddy's, HUL, Maruti, Tata Motors, M&M and NMDC.
Turnover in the cash segment dropped to Rs 9,257.38 crore from Rs 10,542.67 crore Wednesday. A total of 5,865.68 lakh shares changed hands in 51,73,756 trades. Market capitalisation stood at Rs 61,90,455 crore.
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