Volatility was high as India VIX jumped to 13.55 from 13.06, up 0.49 points, or 3.75%
Alarming fiscal deficit numbers sent the key stock market indices tumbling on Thursday even before the investors could weigh in the gross domestic product numbers that came after market hours. The BSE Sensex dropped 453 points, or 1.35%, to 33149.35, logging its biggest single-day fall since November 15 last year when it had lost 514.19 points.
The NSE Nifty 50, on the other hand, plunged 134.75 points, or 1.30%, finishing below the key 10300-mark at 10226.55. It was the index's biggest single-day fall since September 27 this year when it had shed 135.75 points.
Banking and metal stocks led the mayhem.
Kotak Mahindra Bank lost the most among the Sensex pack, plunging 2.63%, followed by State Bank of India that fell 2.54%. Other weak performers included Reliance Industries, Axis Bank,
Wipro, Tata Steel, Lupin, M&M, HDFC, Sun Pharma, Cipla, PowerGrid, ITC, Adani Ports, TCS, ONGC, Infosys and Maruti Suzuki.
Dr Reddy's and NTPC were gainers, rising up to 0.45%.
Experts said widened fiscal deficit concerns, expectations of extension in the reduction of oil output from Organization of the Petroleum Exporting Countries (Opec) led to funds fleeing the market.
Participants kept their portfolios low ahead of Q2 GDP numbers. Squaring-up of positions following end of November series contracts in the derivatives segment and a weak trend at other Asian markets on heavy selling, also weighed on sentiment, said experts.
Deepak Jasani, head of retail research, HDFC Securities Ltd, told DNA Money, "The long traders in the F&O segment may have got panicky on announcement of fiscal deficit numbers. Today was also the F&O expiry day when FIIs are active to unwind their cash futures arbitrage and roll over their existing positions."
Bank of Korea on Thursday raised the interest rates for the first time in six years, and with central banks across the globe raising rates, it may be harder for Reserve Bank of India to cut rates, he said.
Volatility was high as India VIX jumped to 13.55 from 13.06, up 0.49 points, or 3.75%.
The rupee slid 0.19% to settle at 64.46 to a dollar.
"Profit-booking happened today as investors watched their step ahead of GDP numbers. Banking stocks have taken a hit which explains the today's fall up to some extent. Going ahead, benchmark indices may correct 2-3% on the back of elections in Gujarat and the FIIs have put more money this year in debt as against equities, so they are likely to stay away from the markets," G Chokkalingam, founder and managing director, Equinomics Research & Advisory.
Investors' wealth which is measured by market capitalisation of BSE-listed companies declined more than Rs 1.06 lakh crore.
"Any recovery is likely to happen after the next few weeks as RBI and US Fed policy meetings lie in the first half of December," Jasani said.
The broader markets were mixed, with the mid-cap index falling 0.55% and small-cap rising 0.10%.
Overseas, Hong Kong's Hang Seng fell 1.51%, Shanghai Composite Index shed 0.62% while Singapore fell 0.16%. However, Japan's Nikkei rose 0.57%.
ALL FALL DOWN
- Volatility was high as India VIX, a barometer of volatility, was up 0.49 points, or 3.75%
- Profit-booking contributed to the fall as investors were cautious ahead of GDP numbers
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