Nifty tanks 57 points; plunges below 5,600 on tail-end selling

Worsening global growth outlook in the backdrop of looming recessionary fears in the US and Europe further shook investor confidence.

Barring technology space, all key sectoral indices ended firmly in the red with financials, FMCG, auto, capital goods and metal leading the pack.

Things looked good at start of the trading as the key index opened on a positive note despite sluggish global cues. It moved in a tight range in the absence of any follow-up buying and remained listless amid volatility.

The market gave away most of its initial gains and slipped into negative zone in late afternoon. However, the benchmark's slide below the crucial 5,600 level created a panic-like situation, triggering heavy short-selling.

In the currency market, the rupee closed at a fresh two-month low of 55.16 against the US dollar, which also weighed on the market.

Economic uncertainty prompted investors to take out some profits as the market has been under immense pressure following recent weak economic indicators, the 2G auction setback and its impact on fiscal deficit, traders said.

The 50-share Nifty swung between a high of 5,650.15 and a low of 5,559.80 before ending at 5,574.05, a sharp fall of 56.95 points, or 1.01 per cent, over the previous close.

IDFC, Reliance Infra, Tata Motors, DLF, Kotak Bank, HUL, Ambuja Cement, Cipla, ICICI Bank and BHEL were the top losers from the Nifty pack. Notable gainers included Bharti Airtel, Dr Reddy's, Infy, ONGC, Jindal Steel and Coal India.

The turnover in cash segment dropped to Rs 11,925.65 crore from Rs 13,234.14 crore yesterday. Overall, 7,367.92 lakh shares changed hands in 59,30,499 trades. Total market capitalisation was Rs 63,59,154 crore.