India's benchmark indices fell sharply falling way below their 52-week lows admidst a selloff in markets across Asia. A slowdown in the US economic growth led to investors paring down exposure to equities. In the Indian context, a falling rupee has added to the pressure on profitability of companies.
At 1221 hours, the Sensex was down 450 points to 15,614 while the broader Nifty index declined 131 points to 4,680. The Nifty has fallen below the 4,700 mark for the first time in 20 months. The Nifty last traded below 4,700 levels on 8 February, 2010. Benchmark indices in Hong Kong, Korea and Taiwan also traded two to three per cent lower.
"The Nifty support level was 4,720. Once it was taken off the markets witnessed a cascading effect. The Nifty can fall 200 points now as supply will overpower demand," Kiran Jadhav of Precision Technicals said.
Banking stocks saw the steepest cuts, falling 3.5 per cent. HDFC Bank plunged 6 per cent. ICICI Bank was down 4 per cent.
Energy and IT stocks also slumped nearly 3 per cent. Most other sectoral indices were trading with over 2 per cent cut.
All stocks were down on the Sensex. Jaiprakash Associates, Bharti, Reliance and JSPL were trading with over 4 per cent cuts.
Only two stocks were trading higher on the Nifty. RCom was up after three officials of Reliance ADAG were granted bail by the Supreme Court earlier today. GAIL was also trading higher.
The market breadth had collapsed with an overwhelming 92 per cent stocks falling on the broader BSE 500 points.
Among large cap stocks government oil major ONGC, India's largest PSU bank SBI, private sector lender ICICI Bank and Axis Bank made new lows today.