NSE Nifty drops 43 points as sell-off continues

Stocks tumbled for the second day on heavy profit-taking in rate-sensitive counters amid global sluggishness ahead of US Federal Reserve meeting as the benchmark CNX Nifty dropped by 43 points on the National Stock Exchange (NSE) today.
Financials, energy, FMCG, auto, pharma and infra counters witnessed heavy selling as the recent rally, which saw the 50-issue index scale multi-month highs, lured investors to take some money off the table.
Moreover, volatility across the global financial markets, weighed down by uncertainty over US monetary policy, also dampened the overall domestic sentiment.
Strong monetary stimulus measures unleashed by central banks around the world to bolster global economy had helped the stock markets to break a string of record in recent weeks.

The drop in rupee, which hit nearly a six-month low of 55.41 against the dollar, also added some pressure.
The offer-for-sale (OFS) issues by companies trying to meet the June deadline on minimum public shareholding took away some liquidity from the market, traders said.

After a soft opening, the key index swung widely as investors appeared cautious and avoided long positions in the absence of any domestic cues.
Though the market attempted to recover some lost ground in late afternoon trade, it failed in its attempt and closed with substantial losses.
On the global front, Asian stocks ended mixed amid caution ahead of Federal Reserve chief Ben Bernanke's testimony to the Senate on Wednesday as well as speculation over an earlier- than-expected end to the quantitative easing programme on back of improving US economic outlook. Wall Street finished largely unchanged on Monday.

The Nifty fluctuated between a high of 6,180.25 and a low of 6,102.35 before ending at 6,114.10, a sharp fall of 42.80 points, or 0.70 per cent, over its last close.
UltraTech, NTPC, JP Associates, Grasim, DLF, Maruti, Tata Motors, Tata Steel, SBIN and Kotak Bank were among the key losers. Notable gainers were Coal India, BHEL, TCS, HCL Tech, Infosys, Sun Pharma, Cipla, Gail, NMDC and Asian Paints.
Turnover in the cash segment fell to Rs 10,235.13 crore from Rs 10,847.09 crore yesterday. A total of 5,596 lakh shares changed hands in 52,831,20 trades. Market capitalisation stood at Rs 66,64,171 crore.