The brutal sell-off in the Indian equity market was largely on the back of the US market giving way with the S&P 500 and Dow Industrials indices slumping more than 4 percent, as the Dow notched its biggest intraday decline in history with a nearly 1,600-point drop and Wall Street erased its gains for the year.
It was mayhem, a disastrous Tuesday for the Indian markets. The Sensex tanked over 1000 points in the morning trade while the Nifty nose-dived 300 points.
The brutal sell-off in the Indian equity market was largely on the back of the US market giving way with the S&P 500 and Dow Industrials indices slumping more than 4 percent, as the Dow notched its biggest intraday decline in history with a nearly 1,600-point drop and Wall Street erased its gains for the year.
All sectoral indices were trading lower by at least 2 percent with Nifty realty slumping over 4 percent dragged by stocks like DLF, Indiabulls Real Estate and HDIL, each tanking over 5 percent. Unitech, Sobha and Delta Corp were the other losers.
Bank Nifty dipped 3.2 percent led by Axis Bank and Canara Bank, falling over 4 percent each while SBI, PNB, Yes Bank and IndusInd Bank were the other top losers.
The top Nifty losers included names like Tata Motors which fell 7.11 percent followed by Axis Bank and Indiabulls Housing Finance, each shedding over 4.5 percent. UPL and Yes Bank were the other losers.
The top Sensex losers were Vakrangee which tanked 10 percent while Adani Power and Dilip Buildcon were down over 7 percent each.
The top Sensex gainers included Religare Enterprises which added 3.16 percent followed by Astral Poly Technik which added 2 percent.
139 stocks hit new 52-week low on NSE including Allahabad Bank, Castrol India, Exide Industries, Fortis, IDFC twins, India Cements, LIC Housing Finance, PTC India Financial, Tata Motors, Union Bank and Suzlon Energy.
On the BSE, 158 stocks hit fresh 52-week low including names like Srei Infra, Tata Motors, Fortis Healthcare and Cosmo Films among others.
The market breadth was in favour of the declines on Tuesday morning with 84 stocks advancing while 1545 stocks declined and 381 stocks remained unchanged. On the BSE, 173 stocks advanced while 1947 stocks declined and 67 remained unchanged.
In an interview to CNBC-TV18, Sanjay Mookim of BofAML said that the pace of the decline in the market is astounding. He expects earnings growth in FY19 to be better than H2FY18 while he has a Sensex target of 32,000 by end of 2018.
When markets are underperforming, low PE stocks will perform well, he said, adding that this is not the time to buy midcaps.
Sanjay Mookim further added that divestment number looks relatively high if only it is done through secondary markets. Dynamics of Indian market and earnings environment are secondary to global markets.
