The equity markets were in the red again for the second consecutive day in the wake of weak cues from US and Europe along with intense selling pressure in the domestic bourses.
The 30-share Bombay Stock Exchange (BSE) Sensex tanked 424.65 points or 3.03%, ending the day at 13,570.31 points. The Nifty of National Stock Exchange (NSE) was also down 96.15 points or 2.28%, closing at 4,126.90 points.
The Sensex opened the day at 13,721.42 points touching an intra-day high of 13,978.26 points and a low of 13,543.47 points.
All the BSE sectoral indices ended the day in the red, with Realty, Banking and IT being the worst performers. ?We may see volatility this week as September derivatives contract ends on Thursday,? said an analyst from a leading broking house.
Dealers were of the opinion that despite bailout to the US financial sector, a global slowdown was inevitable. This also took its toll on the markets.
Anil Advani, head of research at SBI Cap Securities, said, ?We can attribute today?s (Tuesday?s) downfall to the weak global cues, which had negative impact on the domestic markets.
In the last session, we have had some intense selling by foreign institutional investors (FII), which has also impacted the bourses. We also witnessed a sudden rise in global crude prices, which further fuelled negative sentiment in the markets. We may see a bear phase for a few more weeks.?
The breadth of the market remained negative throughout the day. Out of 2,652 shares traded on the BSE, only 760 rose, while 1,823 declined and 69 remained unchanged. Among the Sensex stocks, only two managed to end in the green, while the remaining 28 ended in the red.