The 30-share Sensex of Bombay Stock Exchange (BSE) closed below 10K at 9,928.35 points, down 171.56 points, or 1.7%. There was, however, some buying in real estate stocks on expectations of a rate cut by the central bank, said a dealer.
Earlier in the day, markets opened with minor gains, but soon slipped into the red on the back of selling. Stock indices finally closed on a negative note. The broader S&P CNX Nifty of the National Stock Exchange (NSE) lost 38.20 points, or 1.24%, to end at 3,039.30 points.
An analyst from a leading broking house said, We witnessed huge volatility in the markets on Monday and it was due to the expiry of F&O this week. However, during the intra-day trade, markets recovered for a while on expectation of a cut in interest rates by the Reserve Bank of India (RBI), along with a stimulus package by the government. At this point, investors are looking for a positive trigger for markets to remain on positive terrain.
Barring consumer durables, FMCG, public sector undertakings and realty companies, all the BSE sectoral indices ended with losses. Bankex and Oil & Gas were the worst performers of the day. As many as 1,276 stocks advanced, 1,258 declined and 82 remained unchanged out of the total 2,616 stocks traded on the BSE.