Sensex plunges 195 points on selling in blue-chips…

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Indian shares snapped their three-day winning streak as blue-chips such as ICICI Bank fell on risk aversion after Chinese stocks posted their biggest daily drop in two weeks, while caution prevailed a day ahead of the monthly derivatives expiry.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 2 per cent on profit-taking. ICICI Bank fell 1.7 per cent, while Larsen & Toubro ended 1.9 per cent lower. The benchmark BSE index plunged 195.33 points or 0.71 per cent at 27,506.46 and the broader NSE index lost 57 points or 0.68 per cent at 8,267, marking their biggest daily fall in a week.

Domestic sentiment was also hit as the poll trends do not indicate that the Modi-led BJP will have majority in Jharkhand or in Jammu and Kashmir.According to traders, markets have discounted clean sweep by BJP in both states. Also, the NSE index also faced technical resistance at 20-day moving average.

Barring FMCG, all other BSE sectoral indices ended in the red. Among them, metal index fell the most by 1.89 per cent, followed by capital goods 1.46 per cent, consumer durables 1.39 per cent and oil & gas 0.96 per cent. Major Sensex gainers were NTPC (3.03%), Bajaj Auto (2.24%), Cipla (1.71%), Bharti Airtel (1.65%) and Hero MotoCorp (0.88%), while the top five losers were Tata Power (3.27%), SSLT (3.13%), Tata Steel (2.28%), Coal India (1.92%) and L&T (1.91%).

The shares rose for a fourth consecutive session to head towards their highest close in two weeks after early poll results indicated Prime Minister Narendra Modi’s party gaining in the elections of Jharkhand as well as Jammu and Kashmir.

The NSE index rose 0.22 per cent to 8,242.80, while the benchmark BSE index gained 0.23 per cent to 27,435.13, heading towards their highest close since December 8. The gains came after early results from the Election Commission of India showed the BJP leading in the vote count in Jharkhand as well as Jammu and Kashmir.

Banks led gainers, helped as well by continued hopes the Reserve Bank of India would cut interest rates in early 2015. State Bank of India rose 0.7 per cent, while Axis Bank gained 0.6 per cent.

Housing Development Finance Corp rose 1.5 per cent on its plan to sell up to 0.95 per cent stake in life insurance unit to Azim Premji Trust.

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