Sensex plunges 450 points, biggest 1-day point fall in 14 months

Indian stocks extended losses in the last hour of trade, with the BSE Sensex falling over 450 points or 2.2 per cent. This is the biggest point fall for the Sensex since February 2012. The 50-share Nifty traded below the key 6,000 mark, but the rupee retreated from the day's low to 54.91 against the dollar.

Sentiments turned for the worse after data showed April's trade deficit widened to $17.8 billion. Gold and silver imports were up by 138 per cent to $7.5 billion last month compared to a year earlier, as retail consumers in the world's biggest gold importer went on a buying spree after global prices fell.

Traders attributed the sharp cut to profit taking after the Sensex and Nifty closed at their 28-month high last week. Market analyst Sarvendra Srivastava said the correction was warranted as the up move was very fast.

Mr Srivastava said the bullish trend remains intact as the correction is not supported by huge volumes and a reversal is likely only when the Nifty closes below 5,920-5,930 mark.

As of 3.15 p.m., the Sensex traded 465 points lower at 19,678, while the Nifty was down 130 points to 5,977.

The largest cut was witnessed in FMCG stocks, with tobacco major ITC falling 5.5 per cent. ITC saw profit booking after gaining 7.7 per cent in May, as of Saturday's close, and marking its all-time highest close in the previous session.

ITC has the biggest weightage on the benchmark indices so the sharp cut in the counter reflected in the indices as well.

49 of the 50 stocks traded lower on the Nifty. Capital goods, IT and banking stocks were also hit. Reliance Infra, Bharti Airtel and Tata Steel slipped 4-5 per cent.

Power Grid was the sole Nifty gainer, and traded up 0.2 per cent.