Mumbai: The market shaved off all Monday's gains in the last two days' fall amid volatility, especially weighed down by banks and Reliance for second consecutive session. It seems like bears were partying ahead of the F&O expiry on Thursday. The movement seen in the market this week was despite absence of global cues as global markets are in a holiday mood for Christmas.
At the close, the Sensex was down 146.10 points to 15,727.85. The Nifty touched an intra-day low of 4,685.65, before closing down 44.70 points at 4,705.80.
Dilip Bhat, Joint MD of Prabhudas Lilladher feels that the market would continue to be volatile ahead of expiry. "It will not be easy for the market to go down neither will it be so easy to even go up, so that could be the reason for volatility," he explained.
According to Sudarshan Sukhani of S2analytics.com, the last support for the Nifty is 4640. "If the market breaks that and go below it then the up move will be over," he said.
Banks saw major selling pressure ahead of expiry - BSE Bankex tumbled 2 per cent. Shares of country's largest lenders ICICI Bank and SBI fell 3.88 per cent and 2 per cent, respectively.
Among other banks, Bank of India, Bank of Baroda, Federal Bank, IndusInd Bank, PNB, Union Bank and Yes Bank were down 2.5-4 per cent while HDFC Bank and Kotak Mahindra ended flat.
The Metal Index too dropped 2 per cent as Jindal Steel plunged 7 per cent amid huge volumes. Hindalco and Sterlite slipped 2-2.5 per cent while Tata Steel was down 0.6 per cent.
Index heavyweights Reliance Industries and ONGC tanked 2 per cent and 1 per cent, respectively. FMCG majors ITC and HUL went down 1 per cent each.
However, shares of NTPC and BHEL outperformed other frontrunners, rising 2.7 per cent and 2.3 per cent.
Tata Power and Cipla moved up 1-1.6 per cent; Infosys and DLF gained 0.7 per cent each.
The broader indices too were down 1 per cent; declining shares outnumbered advancing by 1691 to 1086 on the BSE.
On the global front, Asian markets (barring Shanghai) closed 0.2-0.9 per cent lower. European markets like France's CAC and Britain's FTSE were up over 0.5 per cent.
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