The BSE benchmark Sensex plunged by over 387 points to hit nearly 14-month lows on major sell-off by funds, driven by melting global markets amid fears over the US economy moving towards recession.
The Bombay Stock Exchange index, Sensex, plummeted by 387.31 points, or 2.19 per cent to 17,305.87, the level last seen on June 10 last year.
During the intra-day trade, the gauge had lost over 702 points to slip below 17,000 points to hit a low of 16,990.91 points, a level last seen on May 14, last year.
All the 13 sectoral indices recorded major losses with stocks of IT, metals, realty, financials, oil and gas and capital goods leading the fall.
Broad-based National Stock Exchange’s 50-share index Nifty nosedived 120.55 points, or 2.26 per cent to 5,211.25. It had dipped below the psychological 5,200 points level to trade at 5,116.45 points at the outset of session.
Sentiment on the domestic bourses turned distinctly weak largely in tandem with overnight slide on the US market on worries over a possible recession and European debt worries, triggering widespread selling by major players including foreign funds.
“Weakening trend in global markets and fears of a hike in interest rate to tame inflation are major factors behind the meltdown,” said Mr Tarun Bansal of Delhi-based Aquatoris Shares.
“Investors should remain on the sidelines as the market has not yet bottomed out,” he added.
Market major Reliance Industries sank to a fresh 52-week low of Rs 778.55 before recovering partially to close at Rs 791.65, still down by 2.57 per cent.
Shares of state-run oil marketing companies Indian Oil, HPCL and BPCL recorded smart gains, despite huge losses suffered by the overall market.
Analysts said that stocks posted gains amid reports that the government was moving in direction of de-control of diesel prices.
A weakening trend in crude oil in global market which would reduce the subsidy burden, also supported the upside in oil company stocks, they said.
Among sectoral indices, the IT sector index suffered the most, losing 3.93 per cent to 5,459.02 as Tata Consultancy Services dropped 3.66 per cent to Rs 1,056.70, while Infosys Technologies tanked 4.35 per cent to Rs 2,590.55.
The realty sector index closed 3.13 per cent down at Rs 1,888.97 followed by the metal index that tumbled 2.44 per cent to 13,061.95 points, while the Bankex shed 1.67 per cent to 11,833.22 points..
In the Asian region, Hong Kong’s Hang Seng index sank 4.29 per cent while Japan's Nikkei ended 3.72 per cent lower today. All the European markets were also trading in the red the opening trade today.