Market bloodbath continues as Sensex plunges 400 points

Mumbai: The market bloodbath continued as the benchmark Sensex plunged 406.10 points or 1.27 percent to 31,516.34, on banks, metals, auto and pharma stocks.

The broader Nifty fell 127 points to land at 9,836.65, a setback from the 9,900 mark.

This followed after the benchmark index had already registered losses by plunging 325 points in afternoon trade on across the board selling amid weak Asian cues after German Chancellor Angela Merkel won a fourth term with uneasy coalition to form the next government.

The Nifty too was stuck below the 9,900 level to trade at 9,855.90.

Geopolitical tensions on North Korea and continuous FII outflows led to nervous moments ahead of derivatives expiry due on Thursday.

The Sensex traded at 31,597.27 at 1238 hours, down 325.17 points, or 1.02 per cent.

The broader Nifty fell 108.50 points, or 1.09 per cent, to 9,855.90 at 1238 hours.

Major losers were Adani ports 3.29 per cent, Tata Steel 3.07 per cent, L&T 2.95 per cent and Lupin 2.50 per cent.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,241.73 crore last Friday, showed provisional data from the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 521.17 crore.

Overseas, Asian stocks dropped as investors digested the political developments in Germany and New Zealand over the weekend.

Germany's Merkel's party looks set to remain the largest entity in the next German parliament.