BIG FALL

The benchmark S&P BSE Sensex today plunged 590 points to end below the 18,000 mark as the rupee fell past the 66-mark to a lifetime low and concerns were raised about the subsidy burden after passage of the Food Security Bill.

Chaos returned to the stock markets after three sessions of gains as foreign funds sold heavily. Investor sentiment was unchanged after Finance Minister P Chidambaram said the fiscal deficit would be contained at 4.8 per cent of GDP even after doling out subsidies to implement the Food Security Bill. The 30-share Sensex remained in negative terrain since the opening and touched a low of 17,921.82 before ending at 17,968.08, a fall of 590.05 points or 3.18 per cent. In the previous three sessions, the index added 652.22 points. The broader Nifty on the National Stock Exchange slumped 189.05 points or 3.45 per cent to 5,287.45. The SX40 on the MCX-SX closed down 391.41 points at 10,629.77. "The Food Security Bill was passed yesterday, which is expected to add to the fiscal burden. We believe crude oil has emerged as a key risk in the near term, which is not a good sign for the rupee. Thus, on an overall basis, the macroeconomic outlook has weakened and risks have clearly strengthened."  " said Sanjeev Zarbade, VP at Kotak Securities. 

Reports said Brent crude was close to a 5-month high amid tension after a suspected chemical weapons attack in Syria. Investors lost Rs 1.7 lakh crore in wealth as 1,538 stocks closed lower and 719 advanced. The rupee fell to a lifetime low of 66.07 against the dollar on month-end demand from importers, capital outflows and food bill subsidy concerns. Twelve of the 13 sectoral indices closed lower, led by banking, capital goods and power shares. HDFC Bank, HDFC and ICICI Bank together contributed 251.54 points to the Sensex's decline. The biggest losers on the index were Bharat Heavy Electricals, HDFC Bank and HDFC. Among the gainers, Infosys added Rs 27.55, or 0.91 per cent, to Rs 3,058.10. Foreign institutional investors sold a net Rs 607.43 crore of shares yesterday, as per provisional exchange data. Chidambaram attributed the present economic woes to the stimulus provided to the industry to tide over the global financial meltdown of 2008, which cost the government in terms of fiscal deficit and current account deficit. Referring to the Cabinet Committee on Investment approving 27 projects envisaging an investment of Rs 1.83 lakh crore, the minister said once the investment cycle and manufacturing pick up, there will be positive impact on the economy and in particular, the current account deficit.

ASIAN STOCKS PLUNGE

Asian stock markets ended lower after US Secretary of State John Kerry said Syria's government will be held accountable for using chemical weapons against civilians. Key indices in Singapore, Taiwan, Hong Kong, South Korea and Japan fell, while China's Shanghai Composite inched up. In Europe, indices in France, Germany and UK declined in early trade. In the domestic market, 27 shares on the Sensex ended lower, led by BHEL (9.49 pc), HDFC Bank (8.04 pc), HDFC (7.7 pc), NTPC (5.86 pc), Jindal Steel (5.68 pc), Larsen (5.3 pc), Hindalco (4.98 pc), Bharti Airtel (4.15 pc), Tata Power (4.12 pc) and Coal India (4.09 pc). Among the sectoral indices, S&P BSE-Bankex dropped 5.34 pc, followed by S&P BSE-Capital Goods 4.71 pc, S&P BSE-Power 4.51 pc, S&P BSE-Realty 3.95 pc, S&P BSE-PSU 3.8 pc and S&P BSE-Metal 3.52 pc.
The Mid-Cap and Small-Cap indices fell 2.09 per cent and 1.7 per cent, respectively. The market breadth turned negative as 1,538 stocks ended with losses while 719 finished higher and 138 were unchanged. Total turnover rose to Rs 2,064.78 crore from Rs 1,847.82 crore yesterday. 

177 STOCKS HIT 52 WEEK LOW

As many as 177 stocks hit their fresh one-year low on the BSE today, amid mayhem in the stock market where the benchmark Sensex plunged almost 600 points.Following the weak sentiment across the stock market, blue-chips, including HDFC Bank, HDFC, Ultratech Cement, NTPC and ACC touched their respective 52-week low. Shares of HDFC Bank tanked 8.04 per cent to close at Rs 560.9, while mortgage lender HDFC plunged 7.70 per cent to Rs 686.85 and NTPC lost 5.86 per cent to close at Rs 124.50. In contrast, 47 scrips scaled their 52-week high at the BSE.

Among the 30-Sensex constituents, 27 stocks ended the day with losses in the range of 0.09-9.49 per cent, with BHEL emerging as the worst performer. From the BSE 13 sectoral indices, barring IT space, 12 ended the day in the red with banking sector taking the biggest hit.
Investors lost Rs 1.7 lakh crore in notional wealth in stocks.