The markets declined almost 2% in afternoon trades due to selling pressure in metal shares after the Cabinet cleared the New Mining Bill, calling for companies to share profits. The Nifty declined 74 points, at 4,941 and the Sensex was down 229 points, at 16,468.
The Nifty opened lower tracking subdued global cues as concerns over how the European bailout fund would help the Greece and other countries from averting a default took the front seat. The Nifty reversed losses and touched a high of 5,025 in the mid morning session. However, the Nifty was unable to sustain the recovery and it slipped again to trade near the day's low, tracking weak opening in Europe.
In Asia also the markets headed for their quarterly loss. The Nikkei Stock Average closed flat, at 8,695 and the Shanghai Composite index slipped 0.3% and Hong Kong's Hang Seng Index plunged 2.3% as they played catch up after the holiday. The Nikkei index was down over 11% while the Hang Seng Index plunged over 21% between July-September quarter. In Europe, the FTSE 100, CAC 40 and the DAX plummeted almost 2% each.
Back in India, ICICI Bank, ITC and Infosys were down between 1- 2%, dragging the Sensex down over 60 points. Bharti Airtel, up almost 2% was the only stock which is trading in the green.
Metal shares lost sheen on concerns of impact on profitability after the cabinet approved the mining bill. Coal India plunged 5%, Sterlite Industries and Tata Steel declined between 3-4% each.
Market breadth was negative is negative, 1552 stocks are declined for 1045 stocks that advanced.