Market tumbles over 600 points

Even as India celebrated 60 years of independence on Wednesday, the stock market's dependence on global markets was clearly seen a day later. Pressured by heavy selling across the world, equities opened sharply lower on Thursday.

“The market is strictly following global equities. If US stocks bounce back tonight (Thursday), our market will do the same tomorrow (Friday). If not, we should expect a further cut,” said Sandeep Wagle, chief technical analyst at Angel Stock Broking.

The Sensex lost over 600 points and Nifty nearly 200 points in Thursday's session, with metal, banking and realty stocks worst hit.

Index heavyweights Tata Steel (down 10.34%), Bharti Airtel (6.97%), State Bank of India (5.78%), Hindalco Industries (5.62%) and Reliance Communications (5.55%) bore the brunt of the fall.

Second line stocks were hit comparatively less. The BSE Mid-cap Index lost 3.21% while CNX Mid-cap Index shed 3.94%.

National Stock Exchange's Nifty closed at 4178.6, down 192 points or 4.38%. The index touched a low of 4171.15 intra day. The high was 4366.

Bombay Stock Exchange's Sensex finished down 643 points or 4.28% at 14,358.21, making a low of 14,345.03 and high of 14,584.92.

Market breadth showed 1,858 declines against 848 advances on BSE. On NSE, loser numbered 1,010 and gainers 144.

“14500-14600 are very crucial levels to watch. If broken, the index will rise to 15200-15300 levels. If it breaks on the downside, we could be looking at 13700-13800 levels,” Wagle said.

“The volumes (at Rs 11,791.28 crore) today are a cause for concern,” said Wagle.

In the derivatives segment, Nifty August futures ended at 33-point discount to the spot. Open interest stood at 4.57 crore, with turnover at Rs 16,795.66 crore.

Wagle advises traders to sell on every rally and long-term investors to buy on every dip.