Sensex dips 630 points, Nifty slips below 8200 level

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Photo PTI
Photo PTI

It was a bloody day on Dalal street on 12 May as the Bombay Stock Exchange Sensex plunged by 630 points to below 27,000-level on selling over worries of land acquisition and tax reforms bills getting delayed again.

Also, the Indian rupee depreciated by Rs 0.35 to Rs 64.20 against the USD.

The 30-share BSE index opened in the negative zone after rallying in a major way during the last two days. A major sell-off dragged the index below the 27,000-mark to touch a low of 26,837.39.
It finally came down by 629.82 points or 2.29% at 26,877.48. It had rallied by 908.19 points in the last two sessions on government’s move on MAT issue and hopes of an RBI rate cut.

Key bills, Goods and Service Tax (GST) amendment bill and the land acquisition bill got stuck in the Rajya Sabha raising fears of further delay, traders said.

Participants were also cautious ahead of the release of retail inflation data for April and IIP data for March. Worries on retrospective taxation, forthcoming monsoon season and slower-than-expected recovery in earnings continued to weigh on sentiment.

Besides, a weak trend at other Asian markets, weighed down by uncertainty over Greek debt deal dampened trading sentiment here, traders said.

US Treasury yields hit their highest since early December while German yields added 8 bps to 0.67%.

The 50-issue Nifty slipped below the 8,200-level by falling 198.30 points or 2.38% to close at 8,126.95. Intra-day, it moved between 8,326.65 and 8,115.30.

Of 30-Sensex stocks, Tata Steel, ICICI Bank, BHEL, Vedanta, and Tata Power were among the top losers in the Sensex. Among the gainers were Dr Reddy’s Labs and Hero Motocorp.

Meanwhile, stock markets in Asia ended with a mixed bias and European markets were trading lower in their morning session.

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