Market update: Sensex falls 490 pts to 3-wk low on Delhi exit polls forecasts

Markets on Monday fell for the seventh straight day, its longest losing streak in 15 months, with Sensex losing over 490 points to end at about three-week low on exit polls showing that the BJP may not be able to form government in Delhi .

Besides, the rupee depreciated against the dollar to over three-week low of 62.20 (intra-day) on sustained capital outflows which dampened market sentiments.

The BSE Sensex, after opening lower at 28,566.50, continued to slide on selling pressure in bluechip companies, forcing the Sensex to touch a low of 28,183.32 before settling lower by 490.52, or 1.71 per cent, to close at 28,227.39.

This is its weakest closing since January 16.

About 24 stocks closed with losses, including L&T, GAIL, Cipla, SBI, M&M, Bharti Airtel, Tata Motors, Maruti Suzuki, ICICI Bank, TCS, Axis Bank, Hero MotoCorp, RIL, BHEL, HDFC Bank, ITC Ltd, Coal India, NTPC and HDFC Ltd.

However, Dr Reddy's, Bajaj Auto, Sun Pharma, ONGC, Wipro and Infosys were among the Sensex gainers.

The 50-share NSE Nifty dipped below the psychological 8,600-mark by tumbling 134.70 points, or 1.56 per cent, to close at 8,526.35.

Foreign funds continued to remain net sellers on domestic bourses which weighed on the sentiment and added to selling, equity brokers said.

Disappointing corporate earnings and caution ahead of GDP data for December quarter also cast shadow on the trading sentiments, they said.

Meanwhile, FPIs sold shares worth Rs 96.45 crore on last Friday, as per the provisional data.

Among others, Tata Power fell by 2.44 per cent and Reliance Power closed 5.59 per cent lower on fresh round of selling pressure on fears that the new government in Delhi may again lower power tariffs.

Mixed trend at other Asian markets and a weak opening at European markets also weighed on sentiments here.

Tata Steel fell 5.79 per cent while GAIL and and Sesa Sterlite dropped up to 4.53 per cent.

State Bank of India, ICICI Bank, HDFC Bank, ITC and Tata Motors declined up to 3.65 per cent.

"Metal stocks also declined as weak Chinese import data fuelled the worries over the economic growth," Jignesh Chaudhary, Head of Research, Veracity Broking Services, said.

Of 30 Sensex scrips, 24 stocks ended lower while remaining six finished higher.

Dr Reddy's Lab rose 2.01 per cent, ONGC (1.51 per cent), Bajaj Auto (1.40 per cent), Sun Pharma (1.37 per cent), Infoys (1.11 per cent) and Wipro by 1.06 per cent.

Foreign funds continued to remain net sellers on domestic bourses which weighed on the sentiment and added to selling, equity brokers said.

FPIs sold shares worth Rs 96.45 crore on last Friday, as per the provisional data.

Mixed trend at other Asian markets and a weak opening at European markets also weighed on sentiments here.

Among the S&P BSE sectoral indices Capital Goods fell 4.31 per cent, Realty (2.73 per cent), Metal (2.54 per cent), Auto (2.27 per cent), Banking (2.06 per cent), Power (1.57 per cent), Consumer Durable (1.26 per cent) and FMCG (1.19 per cent).

Small-cap and Mid-cap indices also fell 1.50 per cent and 1.41 per cent on persistent selling pressure from retail investors.

As a result, the total market breadth remained negative as 1,911 stocks ended in red, 927 finished in green while 112 ruled steady. The total turnover dropped further to Rs 2,955.11 crs from Rs 3,194.19 crs on Friday.