Mumbai: Plagued by poor fundamentals, Indian markets chose to decouple from global markets and reacted vigorously to domestic news flow that was tinted red on Thursday. The opposition party's demand for resignation of P Chidambaram only added to market woes, further denting confidence of traders.
The government's reform drive has hit another roadblock. The standing committee on finance has rejected the insurance amendment bill & the UIDAI bill.
When one compares the 2008 global meltdown to the current volatility in equity markets, the key difference is the inability of world governments to take tough policy actions.
The barometer index, the BSE Sensex shut shop at 16488.24 down 388.82 points or 2.30 per cent and the Nifty shut shop at 4943.65 down 118.95 points or 2.35 per cent.
The breadth of the market was disappointing. About 883 shares advanced, 1914 shares declined, and 942 shares remain unchanged.
Bearish traders opt to sell capital goods, realty, metal, power and banking stocks. All BSE sectoral indices ended in red. The broader markets also mirrored largecaps.
Largecaps tumble, Midcaps crumble:
Prominent names like BHEL, Reliance Communications, Jaiprakash Assocaites, Larsen, Hindalco, Sterlite Industries lost over 5 per cent of market-cap in trade on Thursday.
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