Mumbai: The markets tripped the 10,000 mark and touched a low of 9,912 points as the hike in petrol and diesel prices affected the sentiments of the investors.
The Bombay Stock Exchange (BSE) Sensitive Index (Sensex) treaded down by 2.94 per cent, to close at 9,912 points.
Similarely CNX midcap index closed, down by nearly four per cent.
ONGC stocks largely witnessed selling pressure, as the company would be sharing a large part of the oil subsidy burden.
However, the refinery shares were mixed, following the announcement of a hike in product prices and cut in custom duties announced by the Government on Monday.
Asian stocks fared poor after US Federal Reserve Chairman Ben Bernanke said that interest rates will keep rising in the US.
Key benchmark indices in Hong Kong, Japan, Singapore, Indonesia, Malaysia and Australia were down between 0.62 - 2.8 per cent.
However, Taiwan Weighted recovered from lower level and moved into positive zone.
Also, all the BSE indices were trading in the red.
- Auto was down by 2.38 per cent at 4,596.08
- Midcap was down by 3.90 per cent to 4,603.29
- Public Sector Unit was down by 2.60 per cent to Rs 4,983.51
- Smallcap was down by 4.15 per cent to 5,629.42
- Metals by 2.77 per cent to Rs 8,028.12
- Oil and gas was down by 1.79 to Rs 4,846
Major scrips, which gained on the index were:
- SBI, up by 1.20 per cent to 824.25
- Bharti Tele by 0.01 per cent to Rs 353.40
Besides, the losers on the index were - Reliance Energy, ONGC, L&T, Ranbaxy, HLL, NTPC, Hindalco, HLL, NTPC, TataPower, BHEL and Cipla, all down by 2.5 to 6.00 per cent.
The markets moved deeper in the red on account of selling seen in scrips across sectors.
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The markets fell in line with weak global markets. The Dow ended low on inflation concern, high oil prices and Fed signals of further hike in the interest rates.
The overall market breadth was negative about 200 shares advanced, 2044 shares declined, and 20 shares remained unchanged.
The capital goods, pharma, metal and technology stocks witnessed heavy selling.
Govt has hiked petrol prices by Rs 4 per litre, diesel prices by Rs 2 per litre.
All Indian ADRs ended low; ICICI Bank, HDFC Bank down 6 per cent, VSNL, MTNL, Satyam were down 5 per cent each.
FIIs were net buyers in equity to the tune of $142.5 million. MFs were net sellers worth Rs 109.4 crore in equity on June 2.
Sluggishness across the global markets
The analysts said the continuing sluggishness across the global markets - both equity and commodity segments were compounding the downward pressure on the domestic markets.
A renewed surge in global crude oil prices were likely to had offset any positive impact of fuel price hike announced by the government, the marketmen said.
Selling pressure was also seen on the auto stocks, which were seen reeling under the concerns that hike in fuel prices would adversely impact their vehicle sales.
In extremely volatile trading, the benchmark index recovered part of initial losses to regain 10,000 mark in early trading on the BSE on emergence of buying by domestic funds.
The market depicted weakness in early trade tracing a drastic fall in the Asian stock markets amid steep hike in fuel prices last evening.
The markets witnessed heavy selling by funds amidst panic selling by retail investors.
The BSE index crashed in the first five minutes of trading following steep fall in index-related stocks value.
Stock brokers said reports of meltdown on the global markets and hike in fuel prices triggered increased selling by foreign institutional investors as well as retail investors in heavy-weighted blue chip stocks.
All the 30-index related stocks on the BSE were in the red during early trade marked with huge losses.
With Agency inputs
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