Bears are also seeing this as an opportunity to hammer the overvalued market. The market was trading at frothy valuations, said analysts, who expect consolidation going ahead.
The 30-share pack Sensex dropped 530.95 points or 1.09 per cent to close at 48,347.59. Its broader peer NSE Nifty slid 133 points or 0.93 per cent to 14,238.90.
“Indian markets witnessed a highly volatile trade and closed in red due to weak global market and reports of Indo-China border tension. The downside was equally contributed by all the sectors except pharma which traded in the green. Policy decisions of the US Fed meeting, which will commence tomorrow, will drive the global market in the coming days. We have seen Indian markets being highly volatile these days and this trend is expected to continue this week as we inch closer to the Union Budget,” said Vinod Nair, Head of Research at Geojit Financial Services.
The crash wiped off Rs 2.08 lakh crore from the market, as the total market capitalisation of BSE-listed companies fell to Rs 192.27 lakh crore.
Market at a glance:
- RIL tumbles 5% after lack of key disclosures in Q3 irks Street
- Kotak Mahindra Bank falls 2% as bad loans spike
- Grasim Industries surges 6% on capex plans; Asian Paints falls 3%
- UltraTech Cement sees profit-booking after Q3, shares fall 3%
- IPO watch: Home First Finance subscribed 25x, Stove Kraft 0.77x
Among the bluechip names, Grasim Industries was the top gainer, rising 5.87 per cent. UPL, Cipla, Hero Motocorps, Axis Bank, JSW Steel, Bajaj Auto, HDFC Bank, Sun Pharma and Bajaj Finserv were other gainers.
Reliance Industries was the top loser in the Nifty pack, falling 5.58 per cent. IndusInd Bank, HCL Tech, Tata Motors, Eicher Motors, Asian Paints and UltraTech Cement were others that ended in the red.
The broader market indices closed with cuts, underperforming their headline peers. Nifty Smallcap fell 1.18 per cent and Nifty Midcap skidded 0.94 per cent. Nifty 500 — the broadest index on NSE — dropped 0.93 per cent.
Shriram Transport Finance, Fortis Healthcare, Adani Total Gas, JB Chemicals, Century Ply and Granules India were top gainers from mid- and small-cap indices, climbing in the range of 3-6 per cent.
Apollo Tyres, Vodafone Idea, Escorts, Just Dial, Sterlite Tech and Cyient were major losers from the broader market space, falling in the range of 4-9 per cent.
Sectoral matrix was mixed on NSE. Nifty IT fell the most, down 1.76 per cent, followed by Nifty PSU Bank and Nifty Auto. Nifty Pharma was the top gainer, rising 1.71 per cent. Nifty Metal gained marginally.
“We’re seeing participants speculating on the probable announcements in the Union Budget, which is further adding to the volatility. Amid all, we reiterate our view that a decisive close below 14,200 in Nifty would derail the present momentum.”
Market breadth was in favour of losers as 932 stocks ended in the green, while 2,040 shares settled with cuts. As many as 201 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 41 names hit 52-week lows, mostly from the microcap space. About 260 stocks hit upper circuit limits and 387 lower circuit limits.
European markets were trading with cuts at the last count. London-based FTSE was down 0.33 per cent while Paris and Frankfurt were down 0.38 per cent and 0.18 per cent, respectively. In Asia, Singapore, Taiwan and Indonesia traded in the red, while other markets registered some gains.