Sensex plunges 339 points, IT stocks drown (Roundup)

A benchmark index of Indian equities markets closed Monday's trade down 339 points or 1.19 percent, as bearish sentiments loomed due to lack of positive triggers and selling pressure.

The fall in the barometer index was widely attributed to profit-bookings, while commodity prices led by crude continued to see significant correction.

Globally, weak international cues like delay in European central bank's announcement of stimulus package also hurt sentiments.

Heavy selling pressure was observed in all sectors besides the fast moving consumer goods (FMCG) stocks.

Major losers in the day's trade were information technology (IT), capital goods, automobile, bank and technology, entertainment and media (TECK) firms.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 28,433 points, closed at 28,119.40 points (provisionally), down 338.60 points or 1.19 percent from the previous day's close at 28,458.10 points.

The Sensex touched a high of 28,494.85 points and a low of 28,097.12 points in the intra-trade.

"Profit booking continued for another session today with the Sensex losing 338 points. Weak European markets also aided the selloff. The broader market was also weak as suggested by the negative market breadth," said Sanjeev Zarbade, vice president- private client group research, Kotak Securities.

"We await the IIP numbers and the inflation data in the current week. If the data is strong and reflective of improving economic growth, then the market correction could be contained."

The S&P IT index dropped by 344.89 points, capital goods index was lower by 282.15 points, automobile index fell by 263.75 points, bank index plunged by 263.56 points and TECK index went down by 154.49 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed in red. It was down 100.05 points or 1.17 percent at 8,438.25 points.

The market breadth remained negative as there was 1,154 stocks advancing against 1,792 stocks declining.

The major Sensex gainers were: Coal India, up 2.20 percent at Rs.364.30; ITC, up 1.63 percent at Rs.397.85; Sun Pharma, up 0.91 percent at Rs.828.80; ONGC, up 0.63 percent at Rs.368.15; and Cipla, up 0.61 percent at Rs.650.75.

The major Sensex losers were: Infosys, down 4.88 percent at Rs.1,968.60; Sesa Sterlite, down 3.60 percent at Rs.233; Mahindra and Mahindra, down 3.32 percent at Rs.1,251.45; Hindalco Inds, down 2.51 percent at Rs.159.15; and Tata Consultancy Service (TCS), down 2.51 percent at Rs.2,513.70.