The Bombay Stock Exchange benchmark index, Sensex, plummeted by 373 points on sustained selling on Tuesday, which was marked by a freak sale of RIL shares at unbelievable discount of around 20 per cent.
Amid distinct weak global cues, the 30-share index of the BSE opened lower and remained under pressure throughout the day before closing sharply lower by 372.60 points, or 2.20 per cent, at 16572.03.
The high spot of the trade during the day was, however, a trader offloading RIL shares at an unbelievable level of Rs. 840.55, against Monday's close of Rs. 1,045.05, which pulled down the Sensex by 620 points at one point of time. The stock, however, rose within seconds from its 52-week low.
According to marketmen, a trader sold about 62,000 shares of RIL at Rs. 840.55 a share, while the sale order was meant for ICICI Bank. The transaction pulled RIL down to its 52-week low. Looks like there has been a freak trade, Bombay Stock Exchange spokesperson Kalyan Bose said.
However, trade in National Stock Exchange was free of this fluctuation. RIL closed at Rs. 1,009.80, down 3.42 per cent on the NSE.
The National Stock Exchange 50-share index Nifty ended 2.28 per cent lower at 4970.20. Analysts said Indian markets were the biggest loser in the Asia, where all the major indices ended in the red. European stocks too were lower in mid-session. The slowdown in manufacturing in China and Australia is being attributed to Europe's problems, analysts said.
“Investor sentiment is weak across the globe and in such a scenario further correction in the domestic market cannot be ruled out,” Geojit BNP Paribas Financial Services Research Head Alex Mathews said.
After the faux pas, RIL plunged 3.21 per cent to Rs. 1,011.55. Brokers attributed that the crash in scrip was due to an erroneous bid by a trader on the BSE. ICICI Bank lost 3.31 per cent at Rs. 838.35. Other banking stocks also saw selling pressure. SBI dropped 2.57 per cent to Rs. 2,210.15, HDFC Bank 1.48 per cent to Rs. 1,857.55 and HDFC 2.93 per cent to Rs. 2,705.90. Widespread selling was witnessed across the sectors.
Jaiprakash Associates sank 6 per cent to Rs. 117.35, the most in Sensex components, and was followed by Sterlite Industries that fell by 5.04 per cent to Rs. 629.45, Hindalco by 4.43 per cent to Rs. 143.45 and Tata Steel by 4.12 per cent to Rs. 480. DLF declined by 2.01 per cent to Rs. 270.80.
