Mumbai: It was a disappointing session for the markets as the Sensex plunged by over 450 points to below 17K level on aggressive selling by funds following weakening global trends.
Major selling pressure was seen in banking, capital goods, realty, metal, oil and power stocks. Midcap and smallcap stocks also closed in deep red. The market breadth is very weak, 1:4. On the global indices front, Asia ended on a lower note. European markets are also trading in negative terrain.
While most stocks tumbled, IT sector, led by Infosys Technologies, bucked the trend by gaining fresh ground on reports that the government may consider fresh tax sops to the exports business.
Tata Motors, BHEL, Tata Steel, Nalco, Sun Pharma and HCL Tech were the hey losers while Satyam, TCS, Infosys, Tata Power and Sterlite Industries were gainers.
On the primary market front, Bang Overseas slipped at Rs 177.90 as against its issue price of Rs 207 while Shriram EPC slightly up at Rs 303.20 versus issue price of Rs 300.
OnMobile Global, JP Associates, Reliance and Reliance Capital were the most active shares on the bourses. After a weak start, the Sensex fell further to touch the day's low at 17,505.56 and a high of 17,991.29 points before closing at 17,617.60.
The National Stock Exchange index Nifty also dropped by 126.35 points at 5,154.45, after touching a low of 5,116.30 and a high of 5267.15 points.
The selling activity was spread over a wide front sectors, including banking segment, on concerns that margin might fall following a big gap in lending and deposit rates, traders said.
The major pull to the market came in from banking stocks and its index lost 353.95 points at 10,609.81, followed by capital goods index by 459.40 to 15,932.87.
(With PTI inputs)
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