Weighed down by spiraling global crude oil prices that breached $139 a barrel mark on 6 June and inflation concerns, the Indian bourses ended sharply weak with the benchmark index closing at 15,066 levels, down 3.3% 506 points.
The Sensex slipped nearly 700 points in intra-day deals to touch a low of 14,846. Buying at these levels helped it recover some lost ground.
In broader markets, the Nifty slipped below the 22 January level bottom of 4,448 in intra-day deals before settling at 4,500.
“The sharp selling appears to be on political unrest and on oil crisis. Immediate support for the Nifty is pegged at 4,473-4,518. The Bears will have an upper hand unless 4,768 points is not decisively crossed,” said a technical analyst with Religare Securities.
The market breadth was extremely weak with 27 of the Sensex scrips closing in the red. Leading the pack of losers was Jaiprakash Associates. The counter slipped 8.7% by close. ONGC, Reliance Infra, Ambuja Cements, Infosys Technologies, DLF Limited and HDFC were among the other key losers.
However, Ranbaxy Laboratories (up 3.9%), Reliance Communications (1.3%) and Hindalco (0.2%) were the only three scrips that managed to stay afloat in the Sensex pack.
Among sectoral indices, the BSE realty index was the worst hit that skidded 7.4%. Unitech Limited at Rs184 levels lost 9.3% by close. DLF Limited at Rs481 levels shed 7.4% and ended close to its all-time low. Purvankara, HDIL, Ansal Infra, and Phoenix Mill were the other key losers in this space.