Benchmark indices ended the day sharply lower on expiry day for the Sept F&O series with sustained selling pressure in almost the entire Nifty pack.
The Sensex ended the day lower by a staggering 1,114 points at 36,553 points, losing ground for the sixth straight day. The Nifty ended 326 points lower or 3 per cent.
Tata group stocks came in for intense selling pressure with Tata Consultancy Services ending the day down 6 per cent and Tata and Tata Motors too falling 6 per cent. Covid 19 fears in Europe and a sharper than expected slowdown in the US saw sentiments worsen.
"It is possible that we may see more correction. Scotland and UK have said they are contemplating a lockdown. Fears that more economies may close down is creating more nervousness in the market. The revelations on global bank's transactions also weighed heavily. All this is collectively bothering the market, which is on the lookout for reasons to correct. Market had already raced ahead of its valuations.
If we see markets weakening further, it could add more jitters. I see a strong support at 10,800 if market were to weaken from here. Cyclicals will be hammered further. People have stocked up on defensive stocks, and that pack which has stayed resilient, may also feel the heat. Stability in the global markets could be the only savior right now."
Banking, IT pack and Reliance Industries all contributed significantly to the decline. Bajaj Finance, Mahindra and Mahindra and IndusInd Bank all lost nearly 5 per cent in trade.
Bharti Infratel was the only stock which made meaningful gains from the Nifty.