Mumbai: Persistent selling pressure due to a sell-off in China and weak cues in other global markets dragged down benchmark Sensex Tuesday by 322.39 points to over one-month closing low of 27,797.01.
The NSE barometer Nifty also tanked 97.55 points to end below 8,400-mark at 8,340.70 amid investors booking profits for the third straight session.
Shares of power, metal, capital goods, consumer durables, refinery, banking and auto sectors were among the major losers.
The overall market breadth was very weak as about 900 stocks rose while over 2,000 scrips fell.
Rising gold imports widened current account deficit to USD 10.1 billion or 2.1 percent of GDP in July-September quarter of this fiscal, up from 1.2 percent a year-ago, but experts are hopeful that it will remain in comfortable zone to be financed by growing capital inflows.
The BSE Sensex resumed higher at 28,134.22 and firmed up further to 28,157.53 on initial strong demand in view of good foreign capital inflows.
However, it declined afterwards to 27,763.82 before ending at over one-month low of 27,797.01, showing a sharp fall of 322.39 points or 1.15 percent on fag-end selling. It has now lost 765.81 points, or 2.68 percent, in last 3 days.
"Pressurized by weak global cues mainly from China, the domestic bourses slid further down and lost more than a percent in the end. On the macro-front, India's CAD widened for the second quarter of the current financial year, added to selling pressure. Profit taking was widespread," said Jayant Manglik, President-retail distribution, Religare Securities.
The NSE 50-share Nifty also moved down further by 97.55 points or 1.16 percent to 8,340.70.
Chinese stocks led decline as Shanghai Composite index dropped by 5.43 per cent in Asian markets today after China's securities clearing house yesterday tightened use of corporate bonds as collateral for short-term financing.
European stocks were also trading lower after the latest data showed Germany's exports declined at the start of the fourth quarter in adjusted terms. Key indices in France, UK and Germany fell by 0.69 percent to 1.05 percent.
US stocks slid from records yesterday amid continued selling of energy producers as crude oil sank to a five-year low.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said, "Indian local equities continued to trade weak today also, indices went down by over one per cent and posted its third daily fall in a row, on continued profit booking in the market. Investors preferred to stay cautious at higher levels."
However, Foreign Portfolio Investors bought shares worth a massive Rs 4,984.60 crore yesterday as per provisional data.
Twenty six scrips out of the 30-share Sensex pack ended lower while only four finished higher.
Major losers were Sesa Sterlite (5.24 percent), ONGC (4.29 percent), Bharti Airtel (4.24 percent), Tata Power (4.21 percent), NTPC (3.54 percent), Tata Steel (3.43 percent), Hindalco (2.98 percent), BHEL (2.92 percent), Larsen (2.51 percent) and Tata Motors (2.46 percent).
Wipro (2.12 percent), SBI (2.09 percent), Cipla (1.67 percent), Axis Bank (1.61 percent), Maruti (1.36 percent) and ICICI Bank (1.20 percent) also posted losses.
However, Dr Reddys Lab rose by 1.53 percent, Sun Pharma 1.46 percent and M&M 1.21 percent among winners.
Among the S&P BSE sectoral indices, Power fell by 2.75 percent, Metal 2.71 percent, Capital Goods 2.29 percent, Consumer Durables 2.11 percent, Oil & Gas 1.53 percent, Realty 1.36 percent, Bankex 1.28 percent and Auto 1.26 percent.
Small-cap and Mid-cap indices also dropped by 1.59 percent and 1.57 percent due to sustained selling pressure from retail investors.
Overall market breadth remained negative as 2,045 counters finished in the red while 997 ended in green while 96 ruled steady. Total turnover declined to Rs 3,049.29 crore from Rs 3,165.91 crore yesterday.
