The hike in fuel prices has not gone down well with the markets with the benchmark index slipping 448 points to 15,515 levels by close. In broader markets, the Nifty lost 130 points to end at 4,585 levels.
“Technically speaking, 4,620 is a strong support for Nifty futures. However, if this is decisively breached, the downswing will gain fresh momentum and Nifty futures may tumble to 4,480 with some support at 4,600 levels,” said a technical analyst with Religare Securities.
“It must close decisively above 4,820 levels to signal the end of the current downswing and above 4925 for strength,” he added.
Among the BSE 30 scrips, HDFC Bank, BHEL, Larsen & Toubro, Tata Steel, Jaiprakash Associates, Ambuja Cements, Infosys Technologies and TCS Limited were the top losers.
ONGC at Rs887 levels was the only scrip that managed to stay afloat in an otherwise weak market. It moved up 5.3%.
On slippery slope
Ending speculation over fuel prices, the government on 4 June announced Rs5 per litre hike in petrol prices, while diesel prices were upped by Rs3. Custom duty on crude oil has been cut to nil from 5% earlier. The government has also decided to issue oil bonds worth Rs94,601 crore to oil marketing companies.
Despite the hike and duty cuts, BSE oil and gas index shed 3.7% or 384 points with BPCL, Cairn India and Essar Oil tumbling over 7% each. Reliance Industries, HPCL, IOC, GAIL India and Reliance Petroleum also witnessed heavy sell-off.
The decision also proved to be a setback for auto companies that may now witness a slowdown in sales. The BSE auto index lost 3.4% and was among the worst hit.
Maruti Suzuki, Mahindra and Mahindra, Tata Motors, TVS Motor, Ashok Leyland, Hero Honda and Escorts Limited were the top losers in this pack.