FPJ BUSINESS DESK Mumbai Pushed by across the board selling and continued worry over European crisis, Indian equities markets on Monday plunged by 227 points registering biggest percentage fall in past one month.
Infosys led the dow
nward rally shedding 3.92% on reports that it may face heat as USalt39 Department of Homeland Security is reviewing its employer eligibility after finding errors in identity verification forms of some of the companys staff. Tata Consultancy Services, countrys largest software services exporter tanked 2.77% ahead of its fourth quarter earnings today evening.
The 30- scrip sensitive index ( Sensex) of the Bombay Stock Exchange ( BSE), closed at 17,096.68, down 277.16 points or 1.60%. While, the 50- scrip S& P CNX Nifty of the National Stock Exchange also ended lower at 5,200.60, down 90.25 points or 1.71% from its previous close.
Marketmen also attributed the fall to a report that a hedge fund has exited short positions in Indias single stock futures.
Jagannadham Thunuguntla, Strategist and Head, Research, SMC securities, said, ‘Equities are clearly in a bear market. Slowing of corporate growth and policy paralysis not helping the markets gain upward momentum.’Vijay Bhambwani, techncial analyst of bsplindia. com is of the view that markets have broken crucial support of 5275 levels and hammered down below 5200 on huge selling pressure.
The market breadth was skewed in favour of declines.
Only 65 of the 500 stocks on the BSE 500 index managed to close with gain.
The decline was, however, cushioned by RIL which gained 0.64% despite a sharp dip in forth quarter earnings, as they were in line with investor expectations.
