Closing Bell: Sensex tanks 503 points, Nifty below 11,500; SBI, DLF, Tata Motors shares crash

Stock Market News: On account of profit booking and weak global cues, the Indian indices witnessed some profit booking today after taking a pause on yesterday post-Friday rally caused by the tax cut announcement made by Finance Minister Nirmala Sitharaman. The BSE Sensex shed 503 points and closed at 38,593 levels, losing the psychological 39,000 levels while the 50-stock Nifty crashed 148 points and closed at 11,440 levels, which is still above its strong support at 11,420. The Bank Nifty index nosedived 597 points and closed at 29,586 levels.

Speaking on the current selloff in the Indian stock market Prakash Pandey, MD & CEO at Plutus Advisors said, "This selloff is mainly caused by the profit booking post-tax cut rally from Friday. The markets have risen around 8 per cent in three trade session and hence a profit booking was awaited that has taken place today. I still feel that the market is overall bullish and the Nifty is standing at strong support at 11,420 and any dip in the market should be taken as a buying opportunity for the stock market investors." Pande said that Banking, Auto and Metal stocks are expected to further fuel the market rally incoming trade sessions and soon Nifty would show 12,000 levels.

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IDBI Bank, Dewan Housing or DHFL, Tata Communications, Power Grid Corporations, PTC India, Tata Consultancy Service or TCS and Reliance Capital were the major gaining stocks in the intraday trade while State Bank of India or SBI, DLF, Birlasoft, Ashok Leyland, Birlasoft, Tata Motors, NALCO and LIC Housing Finance were among the major losing stocks in the entire Wednesday trade.

Auto stocks led the bloodbath on Dalal Street as the BSE Auto index crashed 3.84 per cent in the intraday trade. Auto major Tata Motors share price crashed 5.88 per cent, shares of Ashok Leyland nosedived 5.52 per cent, Bharat Forge shares dipped 4.51 per cent, Eicher Motors counter went down 4.71 per cent, Maruti Suzuki India went down 4.39 per cent.

Realty stocks also witnessed heavy profit booking as the BSE Realty index went down over 3.5 per cent. Realty major DLF share price crashed 7 per cent, Housing Development & Infrastructure shares went down 4.86 per cent, shares of Indiabulls Real Estate nosedived 5.2 per cent while Oberoi Realty stocks went down 5.13 per cent.

Among major Asian markets, the Japanese Nikkei 225 index 0.36 per cent, South Korean Kospi crashed 1.32 per cent, Hang Seng nosedived 1.28 per cent while the Shanghai markets dipped around 1 per cent.