Market slides on selling frenzy; thumbs down to Rail budget

Written by PTI | Mumbai | Updated: Jul 9 2014, 01:41am hrs
RailAll sectoral indices saw marked fall with financials taking the lead.(Reuters)
Equities tumbled under a massive selling spree, registering its sharpest fall in last 10 months after hitting life-time high as investors were disappointed by Narendra Modi government's maiden Railway Budget.

Concerns about the high valuations as well as profit booking sent the bellwether Nifty index crashing by a whopping 164 points, or 2.11 per cent, to close at 7,623.20 after hitting a new milestone of 7,800 in early trade on the National Stock Exchange today.

All sectoral indices saw marked fall with financials taking the lead.

Shares of companies related to the rail sector which was on the run in recent past along with mid and small cap stocks too plummeted in line with the general trend.

After crossing the 7,800-mark for the first time, Nifty soon turned volatile on profit-booking and remained pressured reacting to rail budget proposals. It witnessed heavy unwinding in late afternoon trade as some weak hands got out of market ahead of the much awaited union budget on Thursday.

Concerns over the market borrowing plan and implementation of projects in a tough economic environment mainly spooked investors' sentiment, a trader commented.

Elsewhere, other Asian and emerging equities ended mostly lower in subdued trade, tracking overnight sell-off on Wall Street amid caution ahead of the second-quarter corporate earnings season.

BHEL, DLF, Jindal Steel, NMDC, Power Grid, NTPC, Tata Power, Coal India, PNB and Bank of Baroda were among the biggest index stock losers. Sun Pharma, ITC, Kotak Bank and HDFC were seen bucking the trend.

Turnover in the cash segment jumped to Rs 22,078.84 crore from Rs 18,875.91 crore yesterday. A total of 12,242.88 lakh shares changed hands in 90,35,237 trades, while the market capitalisation stood at Rs 87,82,429 crore.