Mumbai: The Bombay Stock Exchange tanked around 2% as intense selling pressure was witnessed due to political concerns prior to results of 15th Lok Sabha elections and rise in inflation rate.
Sentiments depreciated as inflation rose to 0.70% for the week ended 25 April, as against 0.57% the week before. Markets opened the day flat but soon picked up tracking mixed cues from the global markets.
With US bank stress tests results released that said that 10 of the 19 financial firms tested would need to raise a total of $75 billion in additional capital Indian bank segment slipped into red.
After the inflation data was announced during noon, markets plunged into colatile trade and henceforth continued to extend their losses.
In the sectoral indices almost all experienced off-loading positions barring consumer durable index. Banks suffered maximum losses, followed by metal, IT, technology, power, realty, and pharma stocks.
The 30-share BSE index slipped from 12,000 level, closing lower by 240.51 points at 11,876.43 and the 50-share NSE Nifty ended down by 63.20 points at 3,620.70.
Leading the losers were Wipro Ltd by 6.59% to Rs355, ICICI Bank by 5.19% to Rs520.60, Reliance Infra by 5.07% to Rs769.15, Sterlite Industries by 4.93% to Rs491.95, Mahindra & Mahindra Ltd by 4.28% to Rs494.25, Housing Development and Finance Corp by 4.19% to Rs 1,739.90 and Reliance Communication by 4.11% to Rs229.60.
Among the very few gainers in the BSE pack there was Jaiprakash Associates surging by 2.53% to Rs142.10, Hindustan Unilever by 0.98% to Rs232.90, Larsen & Toubro Ltd by 0.42% to Rs990.80 and Grasim Industries by 0.03% to Rs1,775.20.
In the international front, the Asian markets ended modestly higher with expectations from US employment data, which is due to be released later today. Japan’s Nikkei rose 0.5% as bank stocks surged and Hong Kong’s Hang Seng ended higher by 1%.