Mumbai: The benchmark Nifty closed at near 2-year lows on Wednesday, falling over 2 per cent on across the board selling amid huge volumes. However, the close could have been much worse if not for some short covering in the dying moments of trade.
The sell-off in heavyweights indicated foreign investors cutting their exposure to Indian equities. Escalating Euro zone fears, an all-time low rupee coupled with slowdown woes led to capitulation in the market.
The 30-share BSE Sensex crashed as much as 587 points to hit an intra-day low of 15,478.69, before closing down 365.45 points at 15,699.97. Meanwhile, the 50-share NSE Nifty touched a low of 4,640.95 during the day, before ending down 105.90 points at 4,706.45 - lowest closing since the November 3, 2009.
The total traded turnover was nearly Rs 2.54 lakh crore.
Meanwhile, the Indian rupee, which tried to recovery in early trade, appreciating to 51.88 to the dollar, stayed below the 52-mark.
According to Anand Tandon, chief executive officer, JRG Securities, the global markets have been a bear phase for a while now but people here have taken a long time to recognise that there is a problem.
The overall situation continues to look gloomy because of problem seen globally and domestically, he said.
The fall was also on a report, which suggested, that one large European exchange traded fund was trying to cut its India exposure. This triggered a large scale sell-off in the market.
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