Mayhem in mkts:Sensex down 430pts; investors poorer by Rs 1 tn

There was blood-bath in markets today as a wave of selling, triggered by a slew a factors like profit-booking and ballooning trade deficit, shaved over 430 points off Sensex -- its biggest fall in 14 months -- to end at one-week low, leaving investors poorer by Rs 1 lakh crore.
Ignoring a fall in retail inflation to 9.4 per cent, April trade deficit data at USD 17.8 billion weighed on the stock market as the BSE benchmark ended 430.65 points lower, or 2.14 per cent, at 19,691.67. This is the biggest fall since Sensex lost nearly 478 points on February 27, 2012.

Selling was seen across-the-spectrum as all 13 sectoral indices closed with losses in 0.94-3.17 per cent range with FMCG, capital goods, metal and auto shares leading downslide.
All 30 Sensex-based scrips closed with sharp to moderate losses with ITC suffering over 5 per cent drop after recent rally. L&T, TCS, ICICI Bank, Tata Motors, RIL and HDFC Bank were among major losers. Bharti Airtel and Tata Steel fell by over 4 per cent each.
"Poor trade deficit data sparked off worries on the CAD front. A weak rupee that went close to 55-level also hit sentiments. Political situation is sensitive after two ministers resigned. Stocks had gone up substantially recently and so some correction was in the offing," said Gautam Sinha Roy, VP - Equities, Motilal Oswal Securities Ltd.

Similarly, the broad-based 50-issue CNX Nifty of the NSE also slumped by 126.80 points, or 2.08 per cent, to end below 6K-mark at 5,980.45. The MCX-SX flagship index SX40 closed 228.64 points, or 1.92 per cent, lower at 11,662.34 points.

Market breadth was negative as 1,542 stocks closed down while just 808 finished higher. BSE market capitalisation fell by over Rs 1 lakh crore to Rs 67.03 lakh crore today.
Weakness in global markets also kept the market subdued.
Globally, Asian stock indices closed mixed with downward bias with sentiment hit by selling in commodities triggered by a strong dollar. European markets were trading weak in their early trade.