Equity benchmarks crumbled in late sell-off on Friday, hitting 19-month closing lows, dragged by sharp correction in oil prices. All sectoral indices barring IT ended in the red with banks seeing more pressure.
The 30-share BSE Sensex fell 317.93 points or 1.28 percent to 24455.04. The 50-share NSE Nifty fell way below 7500, down 99 points or 1.31 percent to 7437.80, the lowest level since June 4, 2014.
The broader markets got slaughtered more compared to benchmarks as the BSE Midcap was down 2.7 percent and Smallcap lost 3.13 percent. The market breadth worsened in late trade; nearly six shares declined for every share advancing compared to 1:1 earlier on the Bombay Stock Exchange.
For the week, the Sensex lost 1.9 percent and the Nifty lost 2.1 percent while Nifty Midcap slumped 6 percent and BSE Smallcap was down 7.5 percent.
Amit Rathi of Anand Rathi Financial Services believes that the pain in market could last for another 3-6 months, and from there on one could see an upward trajectory.
Vikas Khemani, Edelweiss Securities too clearly believes the situation is currently quite complex, especially with global factors weighing heavily on the market and leading to volatility, adding that this kind of uncertainly is likely to continue for the next 3-6 months.
Risk aversion too is high during periods of global uncertainty, says Khemani.
The rupee also weakened past 67.50 a dollar on equity market correction, down 31 paise to 67.60, the lowest closing level since September 3, 2013.
Crude oil futures took a fresh plunge today, falling below USD 30 a barrel as the market braced for more Iranian oil exports, with the lifting of international sanctions possible within days. Nymex crude crashed 5.6 percent to USD 29.45 a barrel and Brent slipped 4.4 percent to USD 29.53 a barrel (at the time of writing this story).
European markets also reacted to oil fall, losing more than 1 percent (at 16 hours IST) while Asian markets also ended lower with the Shanghai tumbling into bear territory, down 3.5 percent.
On home turf, Hindustan Unilever declined 2.7 percent, reacting to earnings that disappointed analysts. Profit fell 22.4 percent year-on-year dented by provision while revenue increased 2.7 percent with volume growth of 6 percent.
Zee Entertainment also declined 3.5 percent after earnings as profit fell 11 percent despite 17 percent growth in revenue. NIIT Technologies dropped nearly 10 percent after the company missed expectations on revenue front while other numbers matched estimates.
Banking & financials took a major knock with the Bank Nifty down 2.6 percent and hitting a 15-month closing low. SBI, Bank of Baroda, Punjab National Bank and Axis Bank plunged 4-6 percent.
Metals stocks also lost shine with Nifty Metal falling 3.5 percent. Vedanta melted 8 percent followed by Tata Steel and Hindalco Industries with 3.7 percent loss.
Tata Motors, L&T, Adani Ports, NTPC, GAIL, ONGC and BHEL were other major losers, down 2-6 percent while Reliance Industries gained 1 percent.