Sensex crashes, biggest 1-day fall in 3 years

Bankex drops 3.27%, BSE PSU index down 3.26%.

The Bombay Stock Exchange (BSE) Sensex crashed 180 points, or 3.15 per cent, to 5,520.66 yesterday - its lowest closing level this year.

It also recorded the biggest single-day fall in the last three years, and lost 243 points at close from the day's high.

The consumer durables index lost 4.13 per cent and the infotech sector index 2.86 per cent in a day that saw all the 30 counters in the Sensex basket ending with losses. Losers led gainers 3:1 on the BSE yesterday.

Old economy stalwart Tata Steel was the biggest loser in the Sensex basket, losing 7.86 per cent at Rs 388.50. The Oil and Natural Gas Corporation stock fell 1.62 per cent to Rs 788.

Among the bank stocks, the State Bank of India scrip was down 3.82 per cent at Rs 576, ICICI Bank 3.65 per cent at Rs 278.20 and HDFC Bank 2.07 per cent at Rs 361.55. Public sector stock Hindustan Petroleum fell 2.61 per cent to Rs 485.25 and Bharat Petroleum 2.59 per cent to Rs 461.

Reliance Industries was down 3.65 per cent at Rs 542.95, ITC 3.10 per cent at Rs 1,100 and Hindustan Lever 2.29 per cent at Rs 153.90. The Steel Authority of India stock slumped 10.39 per cent to Rs 36.65.

"Lack of purchasing power due to liquidity being blocked in the recent public offerings and selling pressure led to the fall," said Jitendra Panda, vice-president (retail), Motilal Oswal Securities.

He added that players might look at exiting at higher levels, leading to further weakness in the short term.

Power stock Tata Power fell 7.56 per cent to Rs 764.95 and Reliance Energy 2.30 per cent to Rs 722.60.

The Gujarat Ambuja Cements scrip fell 6.11 per cent to Rs 285.10, ACC 5.65 per cent to Rs 246.10, L&T 4.06 per cent to Rs 552.30 and Grasim 2.31 per cent to Rs 1,069.45.

Hero Honda Motor was down 5.07 per cent to Rs 450.10, Tata Motors 4.40 per cent to Rs 467.80 and Bajaj Auto 2.55 per cent to Rs 849.75.

Satyam Computer fell 3.95 per cent to Rs 290.90, Wipro 3.42 per cent to Rs 1,419.90 and Infosys Technologies 2.65 per cent to Rs 4,925.80.

Players indicated that domestic funds as well as other institutions were sellers today, even as investors' money remained locked in a recent slew of public offers. They added that mutual funds were selling heavily as corporate year-end redemption pressures mounted.