Mumbai: The BSE Sensex took a big knock on Tuesday, shedding as much as 415 points from the day's high to hit an intraday low of 16,502.91 while the NSE Nifty closed below the 5000 level for the first time since January 18. Heavy sell-off in banks, steel, technology and auto stocks, and the sharp fall in the rupee indicated that overseas investors may have offloaded somewhat exposure.
Huge shorts were built up on Tuesday in last hour of trade. Nifty May 5000 Put added more than 2.5 lakh shares while Nifty May 4900 Put has seen addition of whopping nearly 11 lakh shares in open interest (OI). Even 4800 put added close to 10 lakh shares in OI. Nifty May 5200 Call added close to 5 lakh shares in Open Interest indicating short term resistance for the current series.
The BSE benchmark fell 366.53 points - a biggest fall since March 22 - or 2.17 per cent, to close at 16,546.18 led by 25 components. Meanwhile, the NSE benchmark lost 114.20 points or 2.23 per cent to 4,999.95.
Fall in European markets too added fuel to the fire - France's CAC tanked 2 per cent and Germany's DAX slipped 1 per cent while Britain's FTSE was down 0.25 per cent.
Robert Parker of Credit Suisse AMC said markets worried about situation in Greece as there has been uncertainty on formation of new government in the country. He expects newsflow out of Europe to be negative till June.
The Indian rupee reversed sharply from day's high of 52.68 a dollar. It depreciated by 29.75 paise to 53.20 a dollar at the time of closing of equities while dropped 52 paise from day's high.
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