The Sensex ended at 16,201 (provisional), down 287 points and the Nifty at 4,863, down 80 points.
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(updated at 1431 hours)
The markets recovered slightly but continued to trade weak in late-afternoon trades with the BSE Sensex at 16,371, down 117 points and the Nifty at 4,910, down 33 points. After having witnessed a gap down opening, the markets weakened further after the government cut economic growth forecast for fiscal 2012 and also said that meeting fiscal targets would be a challenge.
Earlier in the day, the Sensex touched the day's low at 16,142 and the day's high at 16,335.
The government, in its mid-term review of the economy, said on Friday that meeting its fiscal targets would be a challenge in a slowing domestic economy and uncertain global environment as it slashed its economic growth forecast for FY12.
In a mid-year economic review presented in parliament, the government said the economy is expected to grow around 7.5%, sharply lower than the original estimate of 9%.
Among the sectoral indices, BSE Auto, Capital Goods and Oil & Gas indices are leading the losses, down 2% each.
Auto shares declined on reports that passenger car sales would fall to single digits compares with over 10% growth so far. Bajaj Auto, Mahindra & Mahindra, Tata Motors and Bharat Forge, down 2-3% each, are the prominent losers from the Auto sector.
Capital goods shares declined after the segment led the industrial output decline in October. BGR Energy Systems, Crompton Greaves, Usha Martin and BHEL, down 3-6% each, are the notable losers from the pack.
Reliance Industries and ONGC, down 1-2% each, are the prominent losers from the Oil & Gas space.
On the Sensex, Bajaj Auto has shed nearly 4% at Rs 1,668. Other prominent losers from the pack are JP Associates, Bharti Airtel, Mahindra & Mahindra and Sterlite Industries, down 3% each.
Hindalco Industries, Coal India, Maruti Suzuki and SBI are the only gainers from the pack.
Among indivual stocks, Hindustan Petroleum (HPCL) has gained 2% at Rs 293.5 after the news that the company is looking to buy crude from sanctions-hit Syria and has asked state-run Shipping Corp of India (SCI) to arrange a vessel, sources said on Wednesday.
Geojit BNP Paribas Financial Services has rallied 10% to Rs 17.80 after the board of directors of the company approved the sale of its entire stake in a joint venture company to BNP Paribas SA for Rs 40.50 crore.
Aviation shares witnessed selling pressure on the bourses with all three listed companies – Jet Airways, Kingfisher Airlines and SpiceJet sliding more than 5% each on service tax payment issues.
The overall market breadth is negative as 1,650 stocks are declining against 949 advancing ones, on the BSE.
