Nifty ends below 7000, Sensex crashes 807 pts; Tata Motors tanks

Moneycontrol Bureau3:30 pm Market crash: The market slide sharply. The Sensex is down 807.07 points or 3.4 percent at 22951.83 and the Nifty slips 239.35 points or 3.3 percent at 6976.35. About 342 shares have advanced, 2343 shares declined, and 93 shares are unchanged.

Tata Motors, BHEL, Adani Ports, ONGC and Hindalco were top losers in the Sensex while Cipla, Bharti Airtel and Dr Reddy's were gainers.2:55 pm Earnings: State Bank of India (SBI) disappointed analysts' with December quarter earnings with standalone profit falling 61.7 percent year-on-year to Rs 1,115 crore on higher provisions. Profit was supported by lower other income. Net interest income (the difference between interest earned and interest expended) declined 1.2 percent to Rs 13,606 crore in Q3 compared to Rs 13,777 crore in year-ago period. The country's largest bank said advances grew by 12.9 percent to Rs 13.91 lakh crore while deposits increased by 10.7 percent to Rs 16.71 lakh crore in quarter ended December 2015.2:45 pm Market Update: Equity benchmarks crashed further in afternoon trade with the Sensex falling 713.70 points or 3 percent to 23045.20. The Nifty broke 7000-mark for the first time since May 12, 2014, down 216.50 points to 6999.20.2:30 pm Europe cracks: European stocks traded sharply lower today, dragged down by a sell-off in banking and mining stocks, investors digest comments made by US Federal Reserve chair Janet Yellen and what that means for the timetable for interest rate hikes.

The pan-European STOXX 600 was down 3.1 percent.

In her semi-annual congressional testimony, Yellen said that the Federal Open Market Committee (FOMC) had not fully researched the legality around negative interest rates, amid whispers that the central bank could enact such a policy.

But Yellen did admit that weakness in the global economy and risks from China could weigh on the outlook for US growth.2:15 pm Market Expert on free fall: The relentless selling in the stock market is coming from redemption pressures that a lot of overseas funds -- such as sovereign wealth funds in the Middle East -- have been facing, who have been forced to liquidate, says Gautam Trivedi, CEO of Religare Capital Markets.

In an interview with CNBC-TV18, Trivedi also warned that mutual funds were only institutional investors that were still buying and that inflows from retail investors turn into outflows, the last remaining pillar will also go. Barring domestic MFs, "there is no bid in the market," he said.

He said that while it was hard to forecast a bottom for the market, he expects smart money to come in at Nifty 6,800. "And whenever the market bottoms out, it won't consolidate there."Also read - Manish Chokhani: You need to STOP worrying about the market2:00 pm Market Check

The market extended losses in afternoon trade with the Sensex falling 598.43 points or 2.52 percent to 23160.47. The Nifty broke 7050 level, down 179.45 points or 2.49 percent to 7036.25.

The market breadth was negative as about seven shares declined for every share advancing on the Bombay Stock Exchange.Bank of India (down 7 percent) and Oriental Bank of Commerce (down 10 percent) hit fresh 52-week lows post disappointing earnings in Q3.State Bank of India was down 1.5 percent as it recorded fresh slippages at Rs 20,692 crore in Q3 against Rs 5,875 crore in preceding quarter.