Bloodbath in markets: Sensex tanks 723 points

Almost all the sectors were trading in red.

May 06, 2015 02:41 pm | Updated 05:23 pm IST - Mumbai

Stock market witnessed a bloodbath on Wednesday with Sensex falling by 723 points — its second biggest single day fall since the new government took over — on huge sell-off by FIIs on concerns over GST and other reforms.

Across-the-board sell-off was triggered by concerns that reform process may get delayed as the key GST bill faces strong political opposition even as it got through Lok Sabha.

Slowdown in the services and manufacturing sectors as also persistent taxation worries added to the pressure.

The 30-share Sensex after opening a shade higher at 27,473.36 and advanced to a high of 27,501.15.

However, it succumbed to selling pressure and dipped below the 27,000-mark with blue-chip stocks ICICI Bank, ONGC, Cipla and ITC, among other plummeting. It touched a low of 26,677.64 before settling 722.77 points or 2.63 per cent lower at 26,717.37, the lowest in nearly 5 months.

This is the biggest single day fall in last four months after 855 points plunge on January 6.

The 50-share NSE Nifty crashed by 227.80 points or 2.74 per cent to close below 8,100-mark at 8,097.

On expectations of speedy reforms promised, the Sensex was on an upward spiral for over nine months and soared to an all-time high of over 30,000 points early in March this year.

However, it has lost over 3,300 points from its peak, wiping out more than half of the gains made since the change in government.

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