Sensex witnessed the worst daily fall since 30th March 2020 as it fell by 1,939 points or 3.8% to the price of Rs 49,099.99. Nifty 50 stood at Rs 14529.20 which is down by 568.20 points or 3.76% and below the psychological level of the 14,500 mark.
All 30 Sensex constituents closed in the red.
ONGC was the top loser, losing around 6.50%, after which came M&M, Bajaj Finserv, Axis Bank, Kotak Bank, PowerGrid, HDFC Bajaj Finance and ICICI Bank.
The most active stocks of the day were Bharti Airtel closing at Rs 556.30, Reliance at Rs 2,085.80, ICICI Bank at Rs 597.75 and Tata Motors closing at Rs 322.95.
Selling pressure was so extreme that all the 11 sector sizes compiled by the National Stock Exchange ended lower while India VIX, the volatility index, surged 23%.
Financial services and banking shares were the lowest takers during the session, the Nifty Financial Service index reduced by 5% and Nifty Bank index tumbled 4.78%.
The market breadth reflecting the overall health of the market, is weak on the BSE, with 431 shares rising, 1,267 shares falling and a total of 51 shares were unchanged.
“Low interest rates made the rally possible form levels of 7,500 and the Nifty has doubled from those levels in last 12 months now signs of interest rate reversal are visible which means liquidity will dry up and easy money will not sustain. Nifty can go down 13,900 levels in the near term given the high valuations Nifty is trading at,” said, A K Prabhakar, head of research at IDBI Capital.