Mumbai: The BSE Sensex slid 1.6 per cent at close on Tuesday led by global fall post German FM Wolfgang Schaeuble's statement. The German FM said that European governments won't resolve the crisis at EU meeting scheduled for October 23.
Among the largecaps, TCS and HCL Tech got butchered quite badly. The 30-share BSE Sensex fell 276.80 points, to close at 16,748.29 on broadbased selling. The 50-share NSE Nifty dropped 80.75 points, to end at 5,037.50 led by fall in 39 stocks.
David Buick, partner at BGC tells CNBC-TV18 that the European Union's inability to resolve the crisis will disappoint markets further. "It's the lack of clarity from European politicians that is making everybody so nervous," he explains. He adds that a write down of debt on the books of European banks - a proverbial haircut - could help the situation.
European markets like France' CAC and Britain's FTSE fell 1 per cent each; Germany's DAX lost just 0.5 per cent. Asian markets closed 1.4-2 per cent lower while only Hang Seng plunged more than 4 per cent.
On the home turf, Nitin Raheja of Rada Advisors says that though the earnings are not too bad, it is likely to drag the market towards the lower end of the trading range at 4,800 than the upside at 5200.
TCS and HCL Tech took huge beating as investors disappointed with their quarterly performance; former one fell nearly 8 per cent and later one lost over 8.5 per cent.
Tata Consultancy Services reported a lower-than-expected 15 per cent year-on-year rise in second quarter net profit at Rs 2,439 crore, amid continued uncertainty in global economy. "There are ambiguities in the external environment in the short-term," CEO and MD N Chandrasekaran told CNBC-TV18.
HCL Tech reported a fall of 2.5 per cent QoQ in consolidated net profit of Rs 497 crore for the quarter ended September 2011.
The BSE IT Index lost 3.7 per cent while Realty, Capital Goods, Metal, Auto, Bank and Oil & Gas indices fell 1-2 per cent.
Heavyweights Reliance Industries, ICICI Bank, Infosys, L&T, ONGC, SBI, Bharti Airtel, BHEL and Wipro were down between 1.3 per cent and 3 per cent.
From the metal space, Sterlite Industries and Hindalco plunged 3.5 per cent each. Tata Steel slipped 2.5 per cent.
However, Coal India outperformed others among frontliners, rising 2.7 per cent post the company dropped plan to buy stake in Peabody unit.
About three shares slipped for every share rising on National Stock Exchange. Total traded turnover was more than Rs 1.33 lakh crore.
The BSE Midcap and Smallcap indices too were down 1 per cent each.
Among midcaps, Patni Computer shot up 16 per cent post company reported consolidated net profit of Rs 90 crore in Q3 as against loss of Rs 52 crore in previous quarter.
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