Nifty tanks 86 pts on fresh macro jitters; P-Note woes

Markets suffered a considerable setback as country's growth story turned simmer on the back of spiralling inflation combined with sliding industrial output, rattling investors sentiment.
The panic unwinding pulled down the Nifty benchmark by a whopping 85.50 points, or 1.08 per cent to close at 7,814.90 after hitting a fresh intra-day low of 7,784.20.
In a double whammy to the economy, industrial output growth plunged to 0.1 per cent in March while retail inflation soared to 5.39 per cent in April.
Rate sensitive counters were hammered down sharply in today's session on dashing hopes of interest rate cuts to revive economic activity. The central bank holds its next policy review on June 7.

Moreover, reports that Sebi is set to tighten due diligence requirements for issuance and transfer of P-Notes and put the onus on investors to ensure compliance with anti-money laundering law further dampened trading mood.
Trading began on a sluggish note with fresh bout of selling in select frontline stocks tracking weak global cues even as concerns rose over lackluster economic data outcome amid a weak rupee sentiment.

The market suddenly turned highly volatile as sell-off accelerated with the benchmark index sliding below the key 7,800 level following heavy unwinding from domestic players and kept on descending.
However, emergence of value buying at low levels largely helped bourses to recover some of their early losses.

Elsewhere, all major Asian equities finished lower led by Japanese Nikkei which fell sharply over 1.41 per cent on strengthening currency value against the dollar.
On the sectoral front, Realty tumbled (2.47 per cent), Metal (2.22 per cent), PSU Bank (1.91 per cent), Infra (1.40 per cent), Nifty Bank (1.22 per cent), Pvt Bank (1.15 per cent), Pharma (0.95 per cent), Energy (0.91 per cent), Auto (0.90 per cent), IT (0.45 per cent) and FMCG (0.41 per cent).
The Mid-cap and Small-cap fell 0.39 and 0.34 per cent.
Major index losers were HDFC, ICICI Bank, Reliance, TCS, L&T, Eicher Mtr, HDFC Bank, Kotak Mahindra, HUL, Adani Ports, SBI, M&M, Bharti Artel, Sun Pharma, Hindalco and ONGC.

Among the gainers included Asian Paints, Tata Motors, ITC, Idea, Bharti Infratel and HCL-Tech.
Turnover in cash segment jumped to Rs 19,336.97 crore against Rs 15,781.09 crore yesterday.
A total of 9,055.69 lakh shares changed hands in 72,78,837 trades. The market capitalisation of the NSE stood at Rs 94,99,504 crore.