Domestic shares fell in line with weak global shares that declined on market talk that a hedge fund had been liquidating large positions in commodities, as well as worries the Federal Reserve could slow its bond buying program. (Read: Why global shares are down)
The Sensex traded 283 points or 1.45 per cent lower while the Nifty declined 84 points to 5,859 as of 2.10 p.m. The rupee weakened to 54.54 to the dollar, a decline of 0.47 paise or 0.9 per cent.
Barring consumer durables, all groups of stocks traded lower on the BSE. The BSE Consumer Durables index managed to stay in green on account of sharp gains in Videocon. (Read full story)
High beta stocks such as metals and realty saw sharp downsides. The BSE Bankex slipped 2 per cent a day after RBI data showed that loan growth continues to remain a concern.
Banks' advances grew 8.7 per cent so far this fiscal year, compared with 11.2 per cent a year earlier, while deposit growth was 7.8 per cent compared with 11.4 per cent in the same period a year earlier.
Private lender ICICI Bank declined 3.22 per cent while State Bank of India shares traded 2 per cent lower.
46 stocks traded lower on the Nifty led by Jindal Steel and Power, which plunged 4 per cent. Infra major Jaiprakash Associates, Tata Steel, infra lender IDFC, aluminium maker Hindalco and iron ore miner Sesa Goa traded with 3-4 per cent cuts.
DLF reversed gains through the week and traded 3.2 per cent lower.
Mobile carrier Bharti Airtel, two-wheeler major Bajaj Auto, state-run Gail India and drug maker Cipla were the only gainers on the Nifty.
Kingfisher Airlines shares were up by their daily limit of 5 per cent for the fourth straight day though other aviation stocks such as SpiceJet fell sharply after Malaysia based AirAsia said it plans to start India operations. (Read full story)
Shriram Transport Finance shares sunk 7 per cent after U.S. private equity firm TPG Capital planned to sell part of its stake in the company to raise about $300 million, according to a term sheet seen by Reuters. (Read full story)
(With inputs from Reuters)