Markets plunge amid volatility, profit booking

Mumbai: The Indian stock market slumped on Tuesday after traversing through the green and red stretches in a highly volatile trade session.

Investors took to profit booking during the afternoon trade after the surge during the first half. The volatility can be gauged from the fact that Sensex, which closed 413 points lower than its previous close, had gained as much as 440 points earlier in the day, although after a choppy start.

The BSE Sensex closed at 33,956.69, lower by 413.89 points or 1.20 per cent from its previous close of 34,370.58. It had opened at 34,520.79, and touched an intra-day high of 34,811.29 and a low of 33,881.19 points.

The Nifty50 on the National Stock Exchange closed at 10,046.65, lower by 120.80 points or 1.19 per cent from its previous close.

Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, said: "Indian equity markets after rising more than 1 per cent, witnessed selling pressure in the latter half and ended in red.

Profit booking in Index heavyweights such as HDFC Bank, Reliance Industries, Bharti Airtel, ICICI Bank and Kotak Mahindra Bank led to the market decline today."

He also noted that fall in the global indices also weighed on the Indian stocks. "European markets opened in red and added to pressure witnessed by the Indian markets today. Investors are now awaiting an announcement from the US Fed meeting which is scheduled tomorrow (Wednesday)," Khemka said.

On the domestic front, he said that after witnessing a sharp rally over the last few days, Indian markets are likely to remain sideways and in a consolidation mode.