Markets slump on expiry day

Panic selling in late-noon trades see markets erase the day's gains and end in the red.

Markets today opened on a muted note as global indices remained soft. The BSE benchmark index traded at the 20,000 levels through the day as IT, oil and auto stocks gained. The index touched a high of 20,185 in late noon trades. However, a sudden bout of profit taking saw the index slip 316 points from the day's high to touch a low of 19,869. The Sensex ended at 19,941 - down 64 points.

The Nifty ended at 5,987 - down 25 points.

US bourses declined as investors dialed back expectations of a uncertainty over US election and monetary stimulus.Traders turned skittish in Asia head of  Bank of Japan policy meeting, Nikkei average ended flat at 9,366. Banking shares posted better-than-expected results pulling Hong Kong higher, up 0.2%. China's Shanghai Composite fell 0.5% to 2,992. Taiwan Weighted gained 0.7% at 8,354.

The volatility was expected by analysts on account of derivatives expiry. Although investors are dumping selective stocks, T P Raman believes that the Indian growth story is intact. "Given the deluge of liquidity, the markets will continue to do well with intermittent corrections."

All sectoral indices, barring auto, dropped into the negative zone. Auto index added marginally to 9,945 on hopes of strong sales in the festival season. However, the BSE realty and consumer durables index slipped 1.4% each to 3,687 and 6,524, respectively.

The food inflation declined to 13.7% for the week ended October 16, from 15.5% in the previous week.

DLF was biggest loser among Sensex stocks and dropped 2% to Rs 356. NTPC and Jaiparaksh Associates shed 1.7% each at Rs 195 and Rs 123, respectively.

Metal stocks were in red. Hindalco and Sterlite slipped 1.6% each to Rs 216 and Rs 170, respectively. Tata Steel dropped 1.2% to Rs 607.

ICICI Bank, Bhel, Reliance Communications and ACC were among the other losers in the index.

Meanwhile, Bharti Airtel held on to gains and ended up 2.6% at Rs 330. Hero Honda added 2.2% to Rs 1,901. HDFC was up 1.8% at Rs 692.

BSE market breadth was fairly negative. Out of 3,089 stocks traded, 1,747 declined while 1,163 advanced in trades.