Tata Steel was top Nifty loser, the stock plunged 10 per cent to close at Rs 1,247.35.The Indian equity benchmarks closed sharply lower while volatility index also knows as the fear index spiked 12 per cent on Monday mirroring losses in other global markets as investors waited for tapering cues from a US Federal Reserve meeting later in the week. The Sensex fell as much as 626 points and Nifty 50 index touched dropped below its important psychological level of 17,400 paced by losses in metal, banking, auto and financial services shares.The Sensex fell 525 points to close at 58,491 and Nifty 50 index dropped 188 points to close at 17,397.Markets tumbled across the globe ahead of US Federal Reserve’s two-day meeting starting on Tuesday, where it is expected to lay the groundwork for the tapering of its bond buying programme. Dow futures fell 535 points or 1.55 per cent indicating a weak start for the US markets. In Europe, Germany’s DAX dropped 2.3 per cent, England’s FTSE 100 index declined 1.63 per cent and France’s CAC40 index fell 2.21 per cent.”The texture of the market is weak and downward momentum could continue in the short run. For the next few trading sessions, the 17,525 levels could be the sacrosanct resistance level for the traders, and trading below the same we can expect further price correction up to 17,300-17,250 levels, whereas trading above 17,525 may trigger a quick pullback rally up to 17,625-17,675 levels. Contra traders can take a long bet near the 17,250 support level with a strict 50 points stop loss,” said Shrikant Chouhan, head of equity research (Retail), Kotak Securities.Back home, selling pressure was broad-based as thirteen of 15 sector gauges compiled by the National Stock Exchange ended lower led by the Nifty Metal index’s over 5 per cent fall. Nifty PSU Bank, Private Bank, Healthcare, Pharma, Financial Services and Bank indices also fell between 1.5-3.6 per cent.On the other hand, information technology and FMCG indices managed to close higher.Mid- and small-cap shares also faced intense selling pressure as Nifty Midcap 100 index dropped 2.2 per cent and Nifty Smallcap 100 index tumbled 1.73 per cent.Among the individual shares, Lupin fell as much as 3.23 per cent to hit an intraday low of Rs 913 after the company informed exchanges that US drug regulator US Food and Drug Administration (US FDA) conducted inspection at its Goa facility with seven observations.Tata Steel was top Nifty loser, the stock plunged 10 per cent to close at Rs 1,247.35. JSW Steel, Hindalco, UPL, Bharat Petroleum, State Bank of India, IndusInd Bank, Tata Motors, Eicher Motors, HDFC, Indian Oil, Dr Reddy’s Labs, HDFC Life, Adani Ports, Shree Cements and Coal India also fell between 2-8 per cent.On the flipside, Hindustan Unilever, Bajaj Finserv, ITC, Nestle India, Britannia and Reliance Industries were among the notable gainers.The overall market breadth was extremely negative as 2,331 shares ended lower while 1,041 ended higher on the BSE.
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