Sensex falls 283 points, SBI plunges 8%
The new venture will be based in Mumbai and the existing brands of Iconix, Ed Hardy and Mossimo will also be rolled out into the partnership.
A sharp selloff in the last hour of trade saw the benchmark indices diving nearly 2% today. The Sensex closed 283 points or 1.5% lower at 18,145 while the broader Nifty index declined 101.8 points at 5,505.
Barring IT, all other sectoral indices on the Bombay Stock Exchange closed deep in the red. Analysts said a correction was in the offing considering the way markets had shot up over the past few weeks.
"The news is somewhat positive about Europe... the fundamentals have really not changed over the last three months... So I just think it's a reaction after a very sharp selloff and now a lot of the positives are actually priced in," Ashish Dhawan, Senior Managing Director of Chrys Capital told NDTV Profit today.
The biggest selloff came in high beta stocks like metals (-4.3%) and realty (-6.7%). These stocks had seen huge run up over the last few sessions. Power (-3.7) and capital goods (-2.3%) stocks also saw profit booking.
Broader markets saw deep corrections and both midcap and small cap indices closed with over 3% cut.
Banking stocks (-3.8%) were under huge selling pressure too. Barring HDFC Bank, all stocks on the BSE banking index closed lower.
Sushil Choksey, Director of Rosy Blue Securities said banking stocks are under pressure because many banks are issuing shares to the government below book value.
Shares of State Bank of India saw strong selling pressure on reports that the public lender will provide a Rs 1,200 crore bailout package for debt laden Kingfisher Airlines. SBI, India's largest bank by assets, is Kingfisher Airlines' largest lender, at Rs 1,400 crore.
SBI stocks closed 7.9% lower at Rs 2,257.80 on the BSE. Shares of Punjab National Bank, which is likely to provide a guarantee to the airline, slumped 4.6 per cent at Rs 1,022 on the BSE.
Meanwhile, shares of Kingfisher Airlines (-6.5%) also closed lower after trading higher for most part of the session. Earlier, stocks of the company had soared nearly 5 per cent on reports of a bailout.
Only six of the 50 stocks on the Nifty index ended with gains. BPCL (1.6%) was the top gainer followed by TCS (1.2%) and Sun Pharma (1%). RCom (-8.7%) was the top loser on the Nifty index.
The market breadth was extremely weak with only 12% stocks rising on the broader BSE 500 index.
Earlier, the benchmark indices had opened lower but had seen a recovery after the Prime Minister's panel said it expected the economy to grow by between 7.5 and 8% in FY13. This year the economy is likely to grow at 7.1%, slightly higher than the government's earlier forecast.