The Hindu Business Line : Markets tumble on NSE's F&O margin move

Market scan
FIIs remain net sellers at Rs 1,225 cr in April
MFs, on the other hand, were net buyers of Rs 1,700 crore
Sun TV tumbled after strong beginning on Monday

Mumbai , April 25

Profit booking and negative sentiment caused by the NSE decision to hike derivative margins, drove the stock market down for the third consecutive session on Tuesday.

The benchmark BSE-30 Sensex fell 268.46 points (2.25 per cent) to 11,646.78, about 400 points lost overall since the bearish trend began.

NSE's S&P CNX Nifty shed 86.25 points (2.43 per cent) to close at 3462.65.

All indices - including BSE Mid Cap and Small Cap, which showed gains on Monday - ended in the red.

The broader BSE-100 and BSE-500 index lost 133.20 points (2.16 per cent) and 91.19 points (1.92 per cent) respectively.

The Sensex opened high and reached 11,953, before surrendering over 306 points during the day.

"The fall was all round. A correction is healthy for the markets. At these levels, the market will be volatile," Mr Ketan Jhaveri of DH Securities, said.

The market may stabilise at around these levels in the coming days.

Funds, waiting in the sidelines for a correction, could enter at lower levels stabilising the market, analysts said.

Foreign funds, which were net buyers of stock worth Rs 350 crore in the last two sessions, turned net sellers on Tuesday.

Provisional NSE data showed they were net sellers for Rs 529.3 crore.

The market breadth was negative with 1,420 stocks dipping while 1,087 stocks advanced.

Cipla Ltd, which fell by 4. 73 per cent Rs 247.70, was the biggest loser among BSE-30 stocks followed by Tata Steel (by 4.60 per cent to Rs 623.05) and Tata Motors (by 4.23 per cent to Rs 917.05).

Index heavyweights Reliance Industries (down 2.44 per cent to Rs 952.75) and Infosys (down 1.77 per cent to Rs 3147.20) also ended in the red.

Dealers said mutual funds, which were waiting for entry, have been net buyers over the last couple of days.

SEBI data showed them net buyers of over Rs 1,700 crore during this month. In contrast, FIIs have been net sellers to the tune of Rs 1,225.50 crore in April.

Sun TV, which enjoyed strong listing on Monday, slumped by about 11 per cent on Tuesday to Rs 1,309 on profit taking.

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