The BSE Sensex fell 305 points or 1.5 per cent to close at 20,209, while the broader Nifty ended at 6,001.80 after falling 88 points. Indian equities fell for the sixth out of seven sessions tracking global stocks, which fell on signs of further weakness in China and amid lingering jitters about developing economies.
The BSE Sensex closed at its lowest since November 13 in a sharp turnaround since it posted a record closing high on January 23. The rout in emerging markets and the Reserve Bank of India's unexpected hike in interest rates on Tuesday has hit domestic sentiments, analysts said.
Fears that foreign institutional investors will move out of emerging markets has dented confidence on the Street.
"The saviours have been FII flows and they have turned negative... there's nothing to counter the exodus," Independent analyst Sanjeev Bhasin told NDTV.
FIIs invested $20 billion in India last year, but bought Indian shares worth a net $85.4 million in January, the smallest amount since they sold $902.5 million in August.
Banking stocks, which have faced the brunt of selling in recent days, shed another 1.3 per cent today. Other rate sensitives such as realty and auto also saw sharp cuts.
IT stocks, which have seen a lot of buying because they are delinked from the slowdown in the domestic economy, also came under selling pressure today. Pharma stocks, considered to be defensive bets in a falling market, offered the only pocket of strength today.
Lupin, which reported strong Q3 results today, led the advances on the Nifty, rising 4.5 per cent. Other drugmakers such as Dr Reddy's and Sun Pharma also saw buying interest.
Hindalco was the top Nifty loser, down 5.6 per cent, while Jaiprakash Associates closed 4 per cent lower. Tata Motors ended 3.8 per cent lower.
The BSE Sensex closed at its lowest since November 13 in a sharp turnaround since it posted a record closing high on January 23. The rout in emerging markets and the Reserve Bank of India's unexpected hike in interest rates on Tuesday has hit domestic sentiments, analysts said.
Fears that foreign institutional investors will move out of emerging markets has dented confidence on the Street.
"The saviours have been FII flows and they have turned negative... there's nothing to counter the exodus," Independent analyst Sanjeev Bhasin told NDTV.
FIIs invested $20 billion in India last year, but bought Indian shares worth a net $85.4 million in January, the smallest amount since they sold $902.5 million in August.
Banking stocks, which have faced the brunt of selling in recent days, shed another 1.3 per cent today. Other rate sensitives such as realty and auto also saw sharp cuts.
IT stocks, which have seen a lot of buying because they are delinked from the slowdown in the domestic economy, also came under selling pressure today. Pharma stocks, considered to be defensive bets in a falling market, offered the only pocket of strength today.
Lupin, which reported strong Q3 results today, led the advances on the Nifty, rising 4.5 per cent. Other drugmakers such as Dr Reddy's and Sun Pharma also saw buying interest.
Hindalco was the top Nifty loser, down 5.6 per cent, while Jaiprakash Associates closed 4 per cent lower. Tata Motors ended 3.8 per cent lower.
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