Mumbai: In the Indian stock markets, foreign portfolio investors (FPIs) stopped buying stocks and started selling again, hammering of funds in Reliance and banking stocks State Bank of India, ICICI Bank along with HCL Technology rallied today for the second day in a row, Sensex 1017 points and Nifty 50 spot index. 293 points were scored. Funds sold off stocks along with global markets as fears of sluggish growth began to mount ahead of US employment figures. With funds hammering frontline-heavyweight stocks, sell-off in capital goods-power, auto, IT stocks including NTPC, Tata Motors, ITC, Larsen & Toubro, Mahindra & Mahindra saw the Sensex lose the 81,000 level to touch a low of 1219.23 points at 80981.93 at one point. Khabki lost 1017.23 points and closed at 81183.93.
While the Nifty 50 spot index fell by 343.80 points to a low of 24801.30 at one point, it closed down by 292.95 points to close at 24852.15. With the index-based crash, a cautious bullish trade in small, mid-cap stocks was also seen softening in panic over the weekend. In banking-finance stocks, funds were hammered the most today and called the crash. Canara Bank fell by Rs.4.80 to Rs.103.40, State Bank of India fell by Rs.36 to Rs.782.60, Federal Bank fell by Rs.6.40 to Rs.183.30, Bank of Baroda fell by Rs.7.95 fell to Rs.1159.15, ICICI Bank fell by Rs.25.85 to Rs.1210.05, Kotak Mahindra Bank fell by Rs.14.15 to Rs.1763.90, HDFC Bank fell by Rs.8.25 to Rs.1637, HDFC Bank Rs.8.25 decreased to Rs.1637. The BSE Bankex index fell 1,127.43 points to close at 57,292.63. Capital goods-power stocks were broadly gapped today as funds started to unwind large overbought positions. Bharat Electronics fell by Rs.6.95 to Rs.283.65, Teamcan fell by Rs.87.25 to Rs.3715.15, Larsen & Toubro fell by Rs.49.15 to Rs.3574.15, Honeywell Automation fell by Rs.511.25 Rs.49,059.60, AIA Engineering fell by Rs.27.30 to Rs.4332.30. The BSE Capital Goods Index fell 1232.11 points to close at 71143.40. Funds, maharathis have started to gather bullish trade, and automobile stocks saw a big offloading today. Tata Motors fell by Rs.20 to Rs.1048.65, Mahindra & Mahindra by Rs.2697.05, Maruti Suzuki by Rs.114.05 to Rs.12,184.10, MRF by Rs.1195.80 to Rs.1.34, 748.75 remained.
BSE Auto Index closed down 757.88 points to close at 57659.01. Market breadth turned negative again as funds, retail investors, small, mid-cap and cash stocks were sold in panic today with the collapse of Sensex, Nifty. Out of a total of 4034 scrips traded in BSE, the number of gainers decreased to 1403 and the number of losers increased to 2544. FIIs had a net sale of Rs.620.95 crore in cash stocks today. While DII-domestic institutional investors had a net purchase of Rs.2121.53 crore in cash today. Funds, maharathis called a crash in Sensex, Nifty today, selling in many stocks, investors’ wealth, i.e. aggregate market capitalization of companies listed in BSE, was also washed away by Rs.5.50 lakh crore to Rs.460.18 lakh crore.
