Sensex closes 389 pts down on local issues, not global woes

Plagued by poor fundamentals, Indian markets chose to decouple from global markets and reacted vigorously to domestic news flow that was tinted red today. The opposition party's demand for resignation of P Chidambaram only added to market woes, further denting confidence of traders.

The government's reform drive has hit another roadblock. The standing committee on finance has rejected the insurance amendment bill & the UIDAI bill.

When one compares the 2008 global meltdown to the current volatility in equity markets, the key difference is the inability of world governments to take tough policy actions.

The bellwether index, the BSE Sensex shut shop at 16488.24 down 388.82 points or 2.30% and the Nifty shut shop at 4943.65 down 118.95 points or 2.35%.

The breadth of the market was disappointing. About 883 shares advanced, 1914 shares declined, and 942 shares remain unchanged.

Bearish traders opt to sell capital goods, realty, metal, power and banking stocks. All BSE sectoral indices ended in red. The broader markets also mirrored largecaps.

Largecaps tumble, Midcaps crumble

Prominent names like BHEL, Reliance Communications, Jaiprakash Assocaites, Larsen, Hindalco, Sterlite Industries lost over 5% of market-cap in trade today.

Most active shares on NSE were SBI, ICICI Bank, Reliance, L&T and Infosys.

Top percentage gainers on the BSE - Ramco System, Sahara One, Kernex Micro, Kalindee Rail and Modern India were up 10-20%.

Top percentage losers on the BSE - Onelife Capital, Simran Farms, Novopan, Swastika Invest and VIP Industries were up 10-13%

Major FMCG Hindustan Lever was trading at Rs 392 down 1.23% from its previous close of Rs 396.90.

Index heavyweight Reliance was trading at Rs 779.20 down 3.71% from its previous close of Rs 809.20.

Tech major Infosys was trading at Rs 2,723.75 down 1.06% from its previous close of Rs 2,752.80.

Cigarette major ITC was trading at Rs 198.75 down 3.1% from its previous close of Rs 205.10.

Refinery major HPCL was trading at Rs 287.30 down 1.61% from its previous close of Rs 292.