Sensex falls below 17k mark as investors sell across-the-board

The BSE Sensex fell 277 points to today to below 17k level at 16,748.29 as investors sold across-the-board, disappointed by the second quarter earnings reported by IT major TCS and weak markets globally.

TCS tumbled 7.71 per cent after posting, late yesterday, just 6.1 per cent growth in net profit for the July-September quarter. It pulled down IT stocks and BSE-IT index fell 3.67 per cent - the biggest loser among all sectoral indices.

The IT industry, which earns about 85 per cent of revenues from the US and the European markets, has been shaky amid concerns of a global economic slowdown.

Other heavyweights such as RIL, ICICI Bank, Infosys, L&T, Tata Motors, ONGC, SBI, Tata Steel, Sterlite and ITC also bore the brunt of selling.

All the 13 sectoral indices closed in the red - down 3.67 per cent to 0.60 per cent, while 25 of the 30 scrips in Sensex closed in the red. NTPC held stable, while others made gains.

Sensex opened weak on bearish Asian cues on slow growth in China and continuing euro-zone debt troubles. China's GDP expanded slower at 9.1 per cent in the third quarter this year, down from 9.5 per cent in Q2 and 9.7 per cent in Q1.

Sensex remained in negative terrain throughout the day and settled at 16,748.29, down 276.80 points or 1.63 per cent.

The NSE broad-based 50-issue Nifty also dipped 80.75 points or 1.58 per cent to 5,037.50.

"Chinese economy grew at slowest pace in 2 years which resulted in panic selling across Asian peers and more importantly, the metal counters," said Shanu Goel, Senior Research Analyst at Bonanza Portfolio.

Besides, the below expected results by TCS, hurt investor sentiment really hard, she added.

Goel said markets are expected to be extremely volatile with key heavyweights going to announce results this week.

Globally, Asian stocks resumed lower after German cautioned yesterday against hopes for quick resolution to Europe's debt problem. The situation aggravated further after China's economic data disappointed investors.

Key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan closed down between 4.23 per cent and 1.36 per cent. European markets too were trading lower in afternoon deals. The CAC was down by 1.58 per cent, the DAX by 0.37 per cent and the FTSE by 1.02 per cent.

Back home, after selling on October 16, FIIs once again turned net buyers and picked up shares worth Rs 378.71 crore yesterday as per provisional figures with stock exchanges.

Other major losers from the Sensex were Tata Motors (3.64 pc), Hindalco (3.57 pc), Sterlite (3.48 pc), Wipro (2.94 pc), DLF (2.63 pc), Bajaj Auto (2.54 pc), Tata Steel (2.54 pc), L&T (2.23 pc), ONGC (2.19 pc), ICICI Bank (2.13 pc), Jaiprakash (2.08 pc), Infosys (1.61 pc), RIL (1.58 pc), SBI (1.50 pc) and BHEL (1.39 pc).

Among sectoral indices, BSE-Teck slumped 3.11 per cent, Realty (2.38 pc), Capital Goods (1.92 pc), Metal (1.72 pc), Auto (1.65 pc) and Bankex (1.44 pc).

The total market breadth on the BSE remained negative with 1,814 counters losing ground, as against 951 finishing with gains. The total turnover dropped to Rs2,200.43 crore from Rs2,444.78 crore yesterday.