The NSE Nifty dropped sharply by 151 points, its biggest single-day loss in past six months, to close at 11,438 due to heavy losses in energy, financials and pharma stocks.
The rupee touching a life-low of 72.67 per dollar, forcing the government to consider measures to soften the fall after the current account deficit widened to most in five years also hit the sentiment. Rupee had declined nearly 15 percent against the dollar this year.
"The persistent weakness in the Indian rupee is now starting to show its impact on all asset classes including the equities. The 'sentiment risk' is now the major challenge for stock markets," Jagannadham Thunuguntla, Sr VP and Head of Research (Wealth), Centrum Broking Limited said.
The Nifty 50 index fell 151 points or 1.30 per cent to end at a three week low of 11,438.10. As many as 42 constituents declined while eight advanced.
Bajaj Finance, IndiaBulls Housing Finance, BajajFinsv, Mahindra&Mahindra, Vedanta Ltd, Hindalco and UltraCemCo were among the major losers
Major index gainers were HclTech, Axis Bank, Zeel, Cipla, GAIL, TCS, Wipro and Infosys.
Among the sectoral indices, PSU bank fell by 2.16 per cent followed by Pharma 2.01 percent, Auto 1.75 percent, FMCG 1.73 percent, Metal 1.70 percent, Energy 1.64 percent, Realty 1.51 percent, Finance Service 1.41 percent, Infra 1.02 percent Private Bank 0.97 per cent and Media 0.12 percent.
The market breadth, indicating its overall health, turned negative. On the NSE,600 stocks advanced,1,230 declined and 81 remained unchanged. Total securities that hit their price bands were 214.
Turnover in the cash segment fell to Rs 33,574.56 crore from Rs 36,966.93 crore as on Friday.
A total of 14,625.13 lakh shares changed hands in 1,18,26,618 trades. The market capitalisation of listed firms on the NSE stood at Rs 1,53,09,846.28 crore.
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