MUMBAI: The equity markets started the week on a negative note extending their fall for the second consecutive day following fresh selling in financial and automobile stocks.
The Sensex slumped 368.84 points or 1.02 per cent to end the day at 35,656.70 while the Nifty closed the session at 10,661.55, down 119 points or 1.10 per cent.
“Last two days have not been good for our markets as we had a pause to the recent optimism. Index wise, there is no major damage done; but if we look at some of the individual stocks, they have certainly taken a brutal knock. On Monday, the low made on January 04, provided some support for the Nifty and hence, going ahead, it would be crucial to see how things pan out around it. A sustainable breach below this level would reinforce the selling pressure to test sub-10,600 levels,” said Sameet Chavan, chief technical analyst, Angel Broking.
Among the Sensex constituents, Yes Bank and Bajaj Finance plunged 5.46 per cent and 5.40 per cent respectively, the shares of ICICI Bank slumped 3.82 per cent, its eight straight session of losses amidst heavy volumes. Auto majors like Hero and Bajaj Auto too came under heavy selling to end the day lower by 2.55 per cent and 2.29 per cent.
Meanwhile the shares of ZEE Entertainment, which was hammered badly last week bounced back after the management clarified there had been no default in repayment of loans by the parent Essel Group. The stock ended the day at Rs 372.50, up 16.64 per cent.
