The 30-share Bombay Stock Exchange (BSE) benchmark sensitive index, Sensex, fell 2.2% to go below the 20,000-mark for the first time this month on Tuesday on heavy selling pressure and negative cues from China and Europe. The Sensex fell 445 points to close at 19,865, its sharpest fall in over five months.
The Nifty at the National Stock Exchange fell by 132.9 points or 2.2% to close below the 6,000 mark at 5,988.7.
Experts see the markets are reacting to the Chinese markets and nothing wrong with the Indian markets in particular. The Chinese markets fell by 4% on Tuesday and has fallen by 8% over the last three trading sessions amidst concerns on inflation and the Chinese government considering steps to cool the economy.
“The decline in the Chinese markets had an impact on the markets worldwide because of the general sentiments,” said CJ George, CEO, Geojit BNP Paribas Financial Services.
“Other than the bad IIP numbers that came last week, there is nothing wrong with the Indian economy and investors should take this opportunity to invest.”
There were also concerns on the growing debt crisis in Ireland and Portugal, which added to the pressure in the markets.
The European markets were trading in the red and the markets in UK and France were down 1.2% and 1.4%, respectively in Tuesday’s trading.
In India, the biggest losers were the real estate and the metal stocks. The two sectoral indices fell by 3.6% and 3.1% respectively.
The small cap companies lost even more as it fell by 2.9% during the day. Among the Sensex companies, Sterlite and Hindalco were the biggest losers as their share prices fell by 5.4% and 5.2%, respectively. Red star over bull market