Sensex tanks 630 pts on delay in reform bills, global cues

After two sessions of rally, the benchmark BSE Sensex today plunged by 630 points to end below the 27,000-mark on across-the-board selling over concerns that key reform bills may get delayed, while weakness in global bond markets also hit sentiment.
Foreign investors' worries continue to bog market despite government's move to assuage their taxation issues, traders said.
Moreover, rupee falling below the 64-mark against the dollar also too weighed on sentiments, they added.
"The recent phase of range-bound correction is led by FIIs, in spite of setting up a high-level committee to decide MAT issue. Factors like increase in Europe bond yield...Currency depreciation is impacting global inflows," said Vinod Nair, Head-Fundamental Research at Geojit BNP Paribas Financial Services.

Moreover, Goods and Service Tax (GST) amendment bill and the land acquisition bill, which got stuck in Rajya Sabha, raised fears of delay in government's economic reforms.
Participants were also cautious ahead of the release of retail inflation data for April and IIP data for March.

Globally, volatility in the bond markets weighed on global stocks, adding to investors' anxiety over Greece's finances.
Ten-year US Treasury yields hit their highest since early December, while German yields added 8 bps to 0.67 percent.
Mixed Asian cues and weak European stocks in morning trade on concerns over Greece's future in the euro zone kept investors on edge.

Back home, the 30-share BSE index opened in the negative zone after rallying for the last two days. A major sell-off in blue-chips dragged the index below the psychological 27,000-mark to touch a low of 26,837.39.
The index finally settled down by 629.82 points or 2.29 per cent at 26,877.48. It had rallied by 908.19 points in the last two session on government's move on MAT issue and hopes of an RBI rate cut.
The 50-issue Nifty slipped below the 8,200-level by falling 198.30 points or 2.38 per cent to close at 8,126.95. Intra-day, it moved between 8,326.65 and 8,115.30.

Meanwhile, total investor wealth today plunged over Rs 2 lakh crore following a crash in BSE barometer.
Of 30-Sensex stocks, 28 ended lower, while Dr Reddy's and Hero MotoCorp managed to finish in the green.
"Markets corrected steeply after being spooked by fears of Greek's exit from the euro zone. Greece was seen gaining limited support from the euro zone on Monday for the progress it has made in difficult bailout requirements" said Hiren Dhakan, Associate Fund manager at Bonanza Portfolio.