The benchmark BSE Sensex tanked nearly 630 points due to heavy selling by funds and retail investors ahead of the release of IIP and inflation data later in the day.
Stocks across the board declined on worries that key land acquisition and tax reforms would be delayed further.
Also, the rupee trading below the key 64 per US dollar level is raising worries that foreign portfolio outflows may create a vicious cycle between rupee and domestic shares, fund managers said.
According to brokers, a weak trend in global markets with lingering concerns over Greece debt situation and sell-off in bond markets too dampened the trading sentiment.
The 30-share BSE index Sensex tumbled 629.82 points or 2.29 per cent at 26,877.48 and the 50-share NSE index Nfity plunged 198.30 points or 2.38 per cent at 8,126.95.
Bengaluru based Sobha Developers down 2 % ahead of quarter results today.
— Meera Siva (@siva_meera)
May 12, 2015All BSE sectoral indices ended significantly in the red. Among them, realty index fell the most by 3.3 per cent, followed by power 3.12 per cent, capital goods 3.1 per cent and banking 3.09 per cent.
#Nifty faces strong resistance around 8350. Today's fall is increasing the danger of breaking below 8000. What next ? 7650? 7600?
— Gurumurthy K (@gurukmurthy)
May 12, 2015Major Sensex losers were Tata Steel 6.29%, BHEL 5.07%, VEDL 4.98%, ICICI Bank 4.59% and Tata Power 3.64%, while the only gainers were Dr Reddy's 3.31% and Hero MotoCorp 3.18%.
Early trade
The 30-share index was down by 261.62 points or 0.95 per cent at 27,245.68 in early trade, with all the sectoral indices led by banking, realty and auto posting losses up to 1.8 per cent.
Mall developer Phoenix Mills to raise Rs 1,000 crore through QIP; Board Meeting was held yesterday. Stock up 0.6% on BSE in the morning
— Meera Siva (@siva_meera)
May 12, 2015The gauge had rallied 908.19 points in the previous two sessions on the back of government’s move to assuage overseas investors’ taxation concerns and hopes of an RBI rate cut.
Similarly, the Nifty slipped below the 8,300-mark by plunging 104.50 points or 1.26 per cent to 8,220.75.
Brokers said emergence of profit-booking by participants ahead of key economic data — industrial production (IIP) numbers for March and inflation based on consumer price index (CPI) for April — to be unveiled later in the day contributed to the fall.
Besides, a weak trend in other Asian markets, weighed down by uncertainty over the Greek debt deal, too, dampened the trading sentiment here, they said.
Global markets
European shares fell sharply in morning trading on Tuesday as a sell-off in global bond markets led investors to trim their risk exposure.
The pan-European FTSEurofirst 300 index was down 1.6 per cent at 1,570.88 points by 0836 GMT and Germany's DAX fell 1.8 per cent, with investors trimming their trading equity positions following a sharp rise in bond yields.
Asian stocks were mostly lower and the euro sagged on Tuesday as insufficient progress on talks between debt-strapped Greece and its creditors kept investors on edge.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3 per cent. Decliners included shares in South Korea, Hong Kong, Malaysia and Thailand, while Chinese equities bucked the trend and rose modestly.