Blue-chips like Infosys, Reliance Industries and TCS went into a tailspin on the bourses on Monday as investors abandoned their holdings in companies that rely heavily on exports after the U.S. lost its top-notch credit rating.
Reliance Industries, the country’s most valued firm, dropped by 3.1 per cent to hit a 52-week low of Rs. 767.05 on the BSE.
Among the other major losers, DLF, Tata Motors, Tata Steel, TCS and Infosys fell in the range of 4-7 per cent in morning trade on the bourses.
Interest rate-sensitive DLF shed 6.54 per cent to trade at Rs. 196.50, while Tata Motors plunged by 6.18 per cent to quote at Rs. 834.50.
TCS and Infosys were trading down by 5.18 per cent and 4.66 per cent, respectively, on the BSE.
Tata Steel tumbled by 4.84 per cent to Rs 507.
Analysts said all the negative sentiment has dampened investors’ confidence, adding that they are worried about the possible impact on Indian companies due to the continuing uncertainty in the U.S.
Stocks like Jindal Steel, Bharti Airtel, Hindalco and Jaiprakash Associates, too, witnessed heavy selling pressure and fell by more than 4 per cent each.
None of the Sensex components were trading in the green till 1015 hours.
Infosys, RIL, TCS and ICICI Bank were the major dampeners for the Sensex and dragged the barometer down by over 500 points in morning trade.
Sterlite, HDFC, HDFC Bank, L&T, ICICI Bank, Bajaj Auto, NTPC, BHEL, Maruti, Coal India were also trading with significant losses.