Sensex tanks 723 points on reform concerns

Nifty tumbles 227.8 points to 8,097

Sensex tanks 723 points on  reform concerns

Benchmark indices fell nearly 3 per cent each to end at their lowest levels for the year on Wednesday following uncertainty over GST and passage of a couple of important bills in Parliament and on huge sell-off by FIIs.

While the Sensex fell 722.77 points (2.63 per cent) to 26,717.37, its second biggest single day fall since Narendra Modi government took over, the Nifty tumbled 227.8 points (2.74 per cent) to end at 8,097.

“There was negative sentiment after increased oil price, rising US 10-year bond yield and concern over the Upper House of Parliament approval of GST and land acquisition bills,” Motilal Oswal Investment Services said in a note.

BHEL was the top loser on the Nifty, down 6.02 per cent at Rs 230.40 with volumes of 31.48 lakh shares. Other major losers included Kotak Mahindra Bank (down 5.45 per cent at Rs 1,345.70), Ambuja Cements (down 5.43 per cent at Rs 226.20), Bank of Baroda (down 5.12 per cent at Rs 161.30) and ICICI Bank (down 4.96 per cent at Rs 312.15). Declines outnumbered advances significantly on the Nifty 50 on a day of carnage with 49 stocks declining and only one advancing. However, all does not seem to be lost as far as markets are concerned. Analysts believe that a bounce is also likely if Nifty sustains above 8,100.

“If in the coming session Nifty sustains above 8,100 level then traders may see bounce in the Nifty, which could lead Nifty to 8,160 followed by 8,210 level. If Nifty does not sustain above 8,100 level then traders may see fall in Nifty to continue up to 8,075 level followed by 8,000 level,” HDFC Securities said in a note.

Eros, Mandhana shares tank up to 6%

Shares of Eros International Media and Mandhana Industries, the entities associated with Salman Khan, came under intense selling pressure after the Bollywood actor was sentenced to five years rigorous imprisonment in the 2002 hit-and-run case. Eros International shares tanked 5.72 per cent to settle at Rs 380.80 on the BSE.

During the day, it slumped 7.15 per cent to Rs 375. Shares of Mandhana Industries, too, plunged 4.24 per cent to close at Rs 264.50. In intra-day session, it dipped 4.74 per cent to Rs 263.10. Eros’s market valuation fell by Rs 213.32 crore to Rs 3,522.68 crore and that of Mandhana went down by Rs 37.87 crore to Rs 876.13 crore. Mandhana Industries is associated with the actor’s NGO ‘Being Human’.

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