Equity indices fell sharply on Thursday, recording the biggest fall in over two weeks following huge sell-off in metals, auto and FMCG sectors stocks amidst several concerns of weak monsoons and a temporary liquidity suck out due to the NHPC initial public offer (IPO). This slip was in contrast to the trend noticed in the global markets, which showed a positive trend.

Prime concern in the marketplace was the lack of monsoon and its implications. Reports from the weather department that India?s monsoon was 64% below normal in the week up to August 5 created a minor flutter. Anita Gandhi, head of institutional business at Arihant Capital Markets, said, ?The major concern in the market was about the announcement of monsoon rains.?

Analysts are now preparing for revising earnings estimate. A research report from Enam Securities mentions that the market is now looking for August rains and a deficiency of more than 15% could impact GDP growth by 0.5 to 1%.

The 30-share Sensex of the Bombay Stock Exchange (BSE) lost 389.80 points or 2.45% to close the day at 15,514.03 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) was down 108.65 points or 2.31% to end the day at 4,585.50 points. However, The MSCI Emerging Markets Index added 0.5% in London, after a two-day, 1.2% slide.

Domestic markets opened the day on a weak note and traded in the red for the initial hours of the session, following continuous selling in the benchmark heavyweight. However, during mid-day trading, markets rebounded on the back of strong cues from European markets, before slipping again into red.

Dealers in markets say that in the coming days, benchmark indices are likely to remain under pressure due to lack of major triggers and the NHPC IPO. The public sector enterprise is expected to raise around Rs 3,000 crore.

?In the last few weeks, we saw markets surging due to the better-than-expected corporate earnings, so that is a positive. Markets are likely to remain volatile and will be looking at the skies and global markets for cues in the coming days,? said an analyst from a leading broking house.