Nifty slips below 2400; bank, power, metal, CG stks crash

The market has drifted further, as banking, power, metal, capital goods, pharma and FMCG stocks are under pressure. Midcap and small cap stocks are following the same trend. The Nifty is trading below 2400 mark.

The Sensex tumbled 560 points to 8,140 and the Nifty fell 194 points to 2,389, at 10:43 am. Midcap and Small Cap indices have lost 4-5%.

NTPC (-8.4%), SBI (-11%), ONGC (-5.7%), TCS (-8.2%), HDFC Bank (-7.75%), Cairn India (-14%), SAIL (-9.4%), Power Grid Corp (-11%), DLF (-7.6%), L&T (-6.72%), HDFC (-8.16%), Tata Power (-13%) and ICICI Bank (-5.73%) are biggest contributors to this fall.

Market breadth is weak; about 642 shares have advanced while 2345 shares have declined. Nearly 203 shares are unchanged.

However, gainers are Suzlon Energy (5.6%), Unitech (33.55%) and Idea Cellular.

The BSE Bankex plunged 7.2%. Power Index fell 6.5%. Metal, Capital Goods, Healthcare and FMCG indices lost 4-6%. Auto, IT and Oil & Gas indices fell 2-3.4%.

Abhijit Chakraborty of Edelweiss Capital feels that the process of de-leveraging is still on. Many hedge funds — including India-dedicated long-offshore funds — are facing redemption-led pressures and it will not be a surprise if some funds close down before the end of the year, he said.