Sensex falls over 200 points, Nifty may test 5,400
Internal documents show that top SKS officials had information implicating company employees in some of the suicides.
Markets traded near the day's low as selling pressure intensified on the bourses. At 1442 hours, the Sensex was down 210 points or 1.2% at 17,869 while the broader Nifty benchmark slumped over 70 points to 5,413.
The selloff came despite higher global stocks. Asian markets closed higher while most European indices traded with gains.
Analysts attributed the decline to profit taking. Indian markets have seen strong gains through the last few weeks on account of over $4 billion foreign inflow.
"The correction was long overdue post the recent rally. I expect correction in markets to around 5,200 levels. Markets are likely to be volatile in March due to election results & Union Budget," Ambareesh Baliga, Chief Operating Officer of Way2Wealth told NDTV Profit today.
Prashasta Seth of IIFL Wealth Management told NDTV Profit that India was outperforming on hopes that things will emerge in terms of structural reforms.
"I would sell rather than buy at this point of time. Till clarity emerges one way or the other - on the election outcome, the budget and reforms - markets are likely to remain range bound," Seth said.
Banking stocks (-2.3%) led the declines. High beta realty (-2.6%) stocks and capital goods (-3%) also witnessed profit taking.
IDFC (-4.5%) was the top Nifty loser followed by HDFC (-4.4%). HDFC shares traded lower on account of a block deal through which Citigroup sold its entire stake in the mortgage lender.
Sterlite was the top Nifty gainer (2.3%). The stock has been under selling pressure on reports of restructuring and a possible merger with Sesa Goa (-0.9%). Coal India (1.3%) was the other big gainer.