Markets crash: Stocks down across the board

MUMBAI, MARCH 22 (AGENCIES)The markets have witnessed a sharp selloff. Most of the bank, metal, auto, technology, oil, and cement shares got hammered. Several midcap shares corrected.

The Sensex closed down 121.24 points at 6535.45, and the Nifty down 35 points or at 2061.60. The last time the Sensex fell by 100 points was on January 12. Analysts expect the Sensex to remain sideways in a 6500 - 6800 range.

Today’s trading saw Market breadth becoming extremely negative with

Bank, steel, and auto stocks getting hammered. Most of the large as well as the midcap stocks corrected. About 420 shares advanced, 2001 shares declined, and 41 shares remained unchanged. The turnover was Rs 18175.42 crore (Rs 181.75 billion).

In the F&O market the Nifty Futures basis turns positive in last 30 minutes. Broadbased unwinding in Open Interest was seen. FII activity was subdued on Monday; they were net buyers to the tune of Rs 5 crore (Rs 50 million).

Index heavyweights SBI, ONGC, Reliance, ITC, ICICI Bank, Tisco, Hindalco, and Infosys all closed lower dragging the market down.

Among the broader indices, the BSE 500 Index closed down 2% at 2765.46 as most of the small and midcap stocks corrected sharply after moving up over the last few weeks.

The BSE Metal Index underperformed the other indices. It closed down 3.46% at 6573.58 as most of the aluminium and steel stocks got hammered. There are fears that metal demand from China may slow down. China's January, February copper imports fell 18% YoY and China's January, Feb aluminium imports fell 37% YoY.

The Bankex closed down 3.37% at 3936.30 as most of the private as well as the PSU banks got hammered on reports that the government has put on hold all proposals to merge state-owned banks. Also the nationwide strike today against the proposed merger of PSU banks & 74% FDI stake in private banks has also hurt the sentiment.

Among auto shares Tata Motors, Maruti, Ashok Leyland, and Bajaj Auto lost ground amid rising crude oil prices. Weakness was also seen in the oil and gas shares.

Several cement and media shares also declined. The frontline as well as the second-rung technology stocks also witnessed selling pressure.

The defensive FMCG and pharma stocks closed mixed.