The market came under intense selling pressure today with the benchmark CNX Nifty plunging by 138 points to close below the 6,000 mark on the back of faltering growth outlook, weakening rupee and fading rate cut hopes.
Financials, FMCG, energy, auto, healthcare, infra, capital goods and metal related sectors bore the brunt of the selling wave. Frontline technology stocks, however, withstood the mayhem.
Though, the GDP numbers were in line-with market expectations, the overnight comments by the Reserve Bank of India (RBI) governor D Subbarao that conditions might not be conducive for a bold rate cut to kick-start ailing economy due to an upside risk to inflation and high current account deficit, rattled investor sentiment.
The market had factored in 0.25 per cent rate cut in the RBI's quarterly review meeting on June 17, according to brokers. But the governor's comments ran contrary to the market perception, they said.
After a gap-down opening amid nervousness ahead of GDP data release, the key index continued its slide on heavy selling almost across the board.
Meanwhile, Asian markets ended mixed with Japan's benchmark index Nikkei-225 rebounding sharply from Thursday's stunning five per cent fall as sentiment improved following weak US economic data, easing near term worries about Federal Reserve winding back its monetary stimulus measures soon.
European stocks were down in early trade following sluggish euro-zone economic data.
The Nifty plummeted by a whopping 138.10 points, or 2.26 per cent over Thursday's levels to close at 5,985.95.
Ultratech Cement, Reliance Infra, PNB, GAIL, IDFC, DLF, ITC, Hindalco, Bharti Airtel and M&M were among the key losers from the index bunch.
The notable gainers included Infosys, Sesa Goa, Ambuja Cement, HCL Tech and TCS.
Turnover in the cash segment improved to Rs 13,855 crore from Rs 13,808 crore yesterday. A total of 7,086.03 lakh shares changed hands in 73,26,575 trades. Market capitalisation stood at Rs 65,18,227 crore.
