Stocks plunged to fresh seven-month lows on Tuesday with infotech shares losing ground on concerns of lacklustre earnings reports this month, while frustrations over unresolved macroeconomic issues loomed over the larger Indian economy.
While the Sensex ended down 211 points, or 1.2%, to 18,227, the broader NSE Nifty fell 48 points, or 0.9%, to 5,495. The Sensex has now lost 815 points, or 4.3% in the last five trading sessions.
Both the Sensex and Nifty are now at their lowest closing levels since September 13, 2012, when the government kickstarted a round of reforms. But high interest rates, unrelenting inflation and a high current account deficit are the new worries while election year concerns on politics have cast a new pall of mist on the market mood.
"The Sensex may stabilise at 500 points down and then rise in a month or so," said Deven Choksey, managing director, KR Choksey Shares & Securities. "Markets will move up if the government acts on commitments it has made in terms of fuel-supply agreements, power tariffs, removing infrastructure hurdles etc."
The BSE IT index, which lost 2%, was the hardest hit, mainly due to a 12% fall in Wipro shares.