Sensex rebounds after government defers GAAR
index for Indian equities markets Monday clawed back into green
after Finance Minister Pranab Mukherjee deferred the general
anti-avoidance rules (GAAR) by a year and said the burden of
proving tax evasion will lie with »
Mumbai: A benchmark
index for Indian equities markets plunged 367 points in late
sell-off Tuesday amid weak global cues. Information technology,
capital goods and auto stocks came under intense selling pressure.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange
(BSE), which opened in the positive at 16,915.71 points, closed at
16,546.18 points, down by 2.17 percent or 366.53 points from its
previous close of 16,912.71 points.
The Sensex touched a high of 16,918.31 points and a low of
16,502.91 points in the intra-day. The Sensex midcap was down by
78.69 points and smallcap fell by 57.53 points.
The Nifty also closed below the 5000 level for the first time
Some analysts said the markets were hit also by the fall in the
rupee, indicating that overseas investors may have offloaded some
of their stocks.
IT stocks in particular were hit after investment bank J.P. Morgan
downgraded the country's largest outsourcing firm TCS from
'overweight' to 'neutral'.
The IT index was down by 3.09 percent. TCS was down by 5.77
percent at Rs.1,200.35, followed by Wipro, down 1.89 percent at
Rs.404.15, and Infosys, down 1.59 percent at Rs.2,391.95.
The banking index fell 2.84 percent. Banking majors such as State
Bank of India (SBI) fell by 3.32 percent at Rs.1,958.95, HDFC Bank
was down 3.14 percent at Rs.515.45.
The auto index was down by 2.40 percent. Tata Motors was down 3.88
percent at Rs.296.35, Hero MotoCorp, down by 3.04 percent at
Rs.1,897.40, Mahindra and Mahindra, down by 2.05 percent at
Rs.676.90 and Bajaj Auto, down 1.42 percent at Rs.1,493.95.
The capital goods index fell by 3.44 percent. Other major Sensex
losers included BHEL, down 4.86 percent at Rs.216.15, ITC, down
3.97 percent at Rs.227.30, Larsen and Toubro (L&T), 3.70 percent
at Rs.1,158.40 Sterlite Inds, down 3.46 percent at Rs.99, Jindal
Steel, down 3.29 percent at Rs.484.70.
Only five companies out of the 30-scrip sensitive Sensex were
gainers. These were: Coal India, up 2.04 percent at Rs.334.90,
Gail India, up 1.63 percent at Rs.324, Hindalco Inds, up 1.16
percent at Rs.117.40, Hindustan Uniliver, up 0.29 percent at
Rs.431.05 and DLF, up 0.16 percent at Rs.190.05.