Indian markets settled sharply lower on Tuesday with Sensex plunging over 400 points led by losses in realty and oil & gas stocks. Investors were cautious ahead of September month F&O expiry this week. At the close, the benchmark 30-share index, BSE Sensex lost 431.05 points or 1.58% at 26,775.69 with 26 components posting drop. Meanwhile, the broad based NSE Nifty fell by 128.75 points or 1.58% at 8,017.55 with 48 components posting drop.
Commenting on the markets, Rakesh Goyal, senior vice president, Bonanza Portfolio said, ''In coming sessions, 7,980 shall be crucial deciding level in near term, and index is likely to witness further selling below this level. Below 7,980, likely target is 7,900-7,870, while above 8,050, likely target is 8,100-8,150.''
China provisional manufacturing purchasing managers' Index (PMI) rose to 50.5, 2-month high in September 2014 compared with 50.2 in August, according to HSBC. Meanwhile, Chinese manufacturing output index came at 51.8 in September, was unchanged from August's two-month low.
Realty index dropped the most with a fall of 4.05% followed by Oil & Gas (2.58%) and Capital Goods (2.4%). Cipla, Tata Motors, Hindalco and Tata Steel were top losers in the Sensex pack. On the other hand, NTPC, HUL, ITC and Maruti Suzuki were major gainers in the benchmark index.
The BSE Mid and small caps underperformed their larger counterparts declining -1.91% and -2.48% respectively. Overall market breadth was negative with 934 advances against 2,151 declines.
Shares of Sanofi, Pidilite Industries and IFCI were active in the day's trade. Sanofi witnessed a sharp rise in share prices of 11.40% after the National Pharmaceutical Pricing Authority (NPPA) has withdrawn guidelines for price control of 108 formulations.
Pidilite Industries registered a rise in share prices of 0.58% today after it announced that the parties have closed and completed the acquisition of the adhesive business of Bluecoat.
Shares of IFCI witnessed a rise of 0.44% after the company announced partial divestment of its shareholding in Tourism Finance Corporation of India (TFCI) in financial year 2014-15.