With several stocks reeling under a severe bout of selling pressure and not many looking good to rebound from their lows, the market now appears all set to end on a dismal note today.
The Sensex is now down 260 points or 1.35% at 19,033.20. The Nifty is down with a loss of 84 points or 1.44% at 5751.25.
Despite the Reserve Bank of India cutting the repo rate by 25 basis points, investors are hammering down stocks today, amid political worries following the DMK party stepping out of the Congress led coalition and withdrawing support even from outside. The DMK chief announced the decision to pull out the government, stating that the centre, despite repeated pleas from the party, has failed to take a tough stance against the Sri Lankan government on the Lankan Tamils issue, turning a blind eye to the DMK view.
Though Asian markets mostly bounced back after Monday's losses and ended higher today, markets in Europe are trading weak, hurting sentiment to an extent.
Realty, capital goods, metal, PSU and bank stocks are taking a severe beating today. Shares from automobile, power, consumer durables and oil sectors are also mostly down with sharp losses. Information technology, FMCG and healthcare stocks are finding modest support.
Besides several large cap stocks, scores of midcap and smallcap stocks are also down in negative territory due to selling pressure. The market breadth is very weak.
Bharti Airtel has lost over 5%. BHEL is down 4.8%, DLF and Jindal Steel & Power are trading lower by about 4%. Mahindra & Mahindra, Hero Motocorp, Sesa Goa, HDFC, Jaiprakash Associates, Tata Steel, BPCL, ONGC, Larsen & Toubro, State Bank of India, HDFC Bank, Hindustan Unilver and Hindalco are all down 2% - 4%. ICICI Bank, Reliance Industries, Coal India and Tata Consultancy Servics are also trading notably lower.
Bucking the weak trend, GAIL India, Bajaj Auto, Lupin, Ranbaxy Laboratories, Sun Pharmaceutical Industries, ITC and Maruti Suzuki are trading in positive territory with sharp to moderate gains.