MUMBAI (Thomson Financial) - Indian shares closed lower as indices crashed in late trading on Monday, tracking the meltdown in global markets and other Asian markets.
Asian shares extended their losses as the Wall Street slumped Friday over concerns of inflation accelerating in the US, which could make it difficult for the US Federal reserve cut rates further.
'The markets are down due to meltdown in global markets. Indian markets can't be decoupled from the happenings around the globe,' Rajiv Sampat, director of Mumbai-based Parag Parikh Financial Advisory Services Ltd said.
The Bombay Stock Exchange's (BSE) benchmark 30-stock Sensex fell 769.48 points, or 3.84 pct, to 19261.35, its second-biggest points fall in a single day, while the National Stock Exchange's S&P CNX Nifty, which registered its biggest points fall in a day, dipped 4.27 pct at 5,789.20 points.
With the year end festival season round the corner, FIIs turned sellers and investors locked in profits across all sectors, which added to today's fall, Sampat added.
Contrary to the dealers' forecasts in the morning, the mid-cap and small-cap shares tumbled too. The BSE's midcap index was down 3.87 pct at 9,105.58 points, while the smallcap index fell 2.91 pct to 11,840.02 points.
An analyst at a hedge fund, however, said, 'It (the fall) is a temporary action and midcaps are likely to do well even in the coming days as this phase passes. Shares of sugar companies are likely to outperform the markets in the medium term, but auto companies are likely to come under pressure.'
Among the biggest losers today were, Housing Development Finance Corp (HDFC) which fell 5.93 pct to close at 2877.55 and state-owned Bharat Heavy Electricals Ltd which dipped 5.32 pct to 2425.25.
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