Benchmark share indices ended nearly 2% down on Monday, amid weak cues from Asia and Europe, with index heavyweight Infosys leading the decline amid reports that the company is under scrutiny from the US Department of Homeland Security (DHS) for likely errors in employer eligibility documents of its staff working in the United States.
The Sensex provisionally ended down 316 points or 1.8% at 17,057 and the Nifty ended down 102 points or 1.9% at 5,189.
(Updated at 14:19 hrs)
Markets have extended the losses and have reached near day lows on reports that Macquarie’s Asia hedge fund has exited its short positions in Indian single stock futures. Dismal performance of index heavyweight Infosys and weak opening of the European markets have further pulled down the sentiments.
At 14:20, the Sensex was down 208 points at 17,166 and the Nifty was down 70 points at 5,220. The Sensex touched an intra-day low of 17,151 and the Nifty at 5,216 so far.
Macquarie's Asia hedge fund has exited its short positions in Indian single stock futures in response to a controversial set of proposed tax rules that could lower investment returns, according to a Reuters report.
Meanwhile, the euro edged down from two-week highs and shares weakened on Monday as political developments in France and the Netherlands raised fears about the region's commitment to tackle its ongoing debt crisis.
Among Sensex shares, index heavyweight Infosys is down nearly 4% on reports that the company is under scrutiny from the US Department of Homeland Security (DHS) for likely errors in employer eligibility documents of its staff working in the United States.
From the Realty pack, DLF is the top Sensex loser, down over 4% after the Bombay Stock Exchange (BSE) has decided to exclude Delhi-based real estate major from its benchmark index Sensex w.e.f June 11, 2012.
Banking stocks like SBI and HDFC Bank have plunged between 1-2%. SBI is down almost 3% after the bank said it has decided to reduce lending rates on loans carrying higher interest rates.
Telecom major Bharti Airtel is down by over 3%^while Tata Motors has slipped 2% on profit booking after gains in the previous few sessions.
In the capital goods segment, BHEL and L&T have plummeted between 1-3%.
Metal shares like Hindalco, Sterlite and JSPL have melted between 2-4%.
Other notable losers include GAIL India, Bajaj Auto, Tata Power, Cipla and Hero MotoCorp.
On the gaining side, RIL is the top Sensex gainer, up over 1%.
The broader indices have been battered in line with the benchmarks – BSE Midcap and Smallcap indices are down over 1% each.
The market breadth has weakened further with 1,665 declining and 977 shares advancing.