Mumbai: There was blood-bath in markets Monday as a wave of selling, triggered by a slew a factors like profit-booking and ballooning trade deficit, shaved over 430 points off Sensex -- its biggest fall in 14 months -- to end at one-week low, leaving investors poorer by Rs 1 lakh crore.
Ignoring a fall in retail inflation to 9.4 percent, April trade deficit data at USD 17.8 billion weighed on the stock market as the BSE benchmark ended 430.65 points lower, or 2.14 percent, at 19,691.67. This is the biggest fall since Sensex lost nearly 478 points on February 27, 2012.
Selling was seen across-the-spectrum as all 13 sectoral indices closed with losses in 0.94-3.17 percent range with FMCG, capital goods, metal and auto shares leading downslide.
All 30 Sensex-based scrips closed with sharp to moderate losses with ITC suffering over 5 percent drop after recent rally. L&T, TCS, ICICI Bank, Tata Motors, RIL and HDFC Bank were among major losers. Bharti Airtel and Tata Steel fell by over 4 percent each.
"Poor trade deficit data sparked off worries on the CAD front. A weak rupee that went close to 55-level also hit sentiments. Political situation is sensitive after two ministers resigned. Stocks had gone up substantially recently and so some correction was in the offing," said Gautam Sinha Roy, VP - Equities, Motilal Oswal Securities Ltd.
Similarly, the broad-based 50-issue CNX Nifty of the NSE also slumped by 126.80 points, or 2.08 percent, to end below 6K-mark at 5,980.45. The MCX-SX flagship index SX40 closed 228.64 points, or 1.92 percent, lower at 11,662.34 points.
Market breadth was negative as 1,542 stocks closed down while just 808 finished higher. BSE market capitalisation fell by over Rs 1 lakh crore to Rs 67.03 lakh crore today.
Weakness in global markets also kept the market subdued.
Globally, Asian stock indices closed mixed with downward bias with sentiment hit by selling in commodities triggered by a strong dollar. European markets were trading weak in their early trade.
Key indices in China, Hong Kong, Singapore and Taiwan ended with losses while from Japan and Kospi closed higher.
Japanese stocks jumped 1.20 percent to their highest level in more than five years, boosted by an improved profit outlook and further yen weakness.
France's CAC was down by 0.49 percent, Germany's DAX by 0.60 percent and the UK's FTSE by 0.30 percent.
Back home, major losers from the Sensex pack were Tata Steel (4.22 percent), Bharti Airtel (4.14 percent), Tata Motors (3.27 percent), L&T (2.96 percent), GAIL India (2.94 percent), BHEL (2.86 percent), Sterlite (2.66 percent), Bajaj Auto (2.46 percent), TCS (2.42 percent), ONGC (2.30 percent), Coal India (2.17 percent), Cipla (1.74 percentt, Wipro (1.71 percent) and Hero MotoCorp (1.69 percent).
Maruti Suzuki (1.61 percent), Hindalco (1.60 percent), ICICI Bank (1.56 percent), HDFC (1.40 percent), HDFC Bank (1.34 percent) and RIL (1.27 percent) also saw moderate losses.
"Trade deficit number of close to USD 18bn for the month of April surprised negatively on the back of further increase in the import of Gold and Silver and feeble exports growth. It has dented hopes that CAD situation would significantly improve with the recent crash in prices of oil and precious metals," said Amar Ambani, Head of Research IIFL.
From sectoral indices, S&P BSE-FMCG tumbled by 3.17 percent, followed by S&P BSE-CG (2.61 percent), S&P BSE-Metal (2.54 percent), S&P BSE-Auto (2.06 percent) and S&P BSE-Teck (2.05 percent).
"After continuous buying for last four weeks, investors seem to be skeptical of buying at higher levels. Many stocks had reached their all-time high levels and investors booked profits today," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio Limited.