Mumbai: Benchmark Sensex erased early gains and plunged in late morning trade, while the Nifty tested the 10,000 level due to sudden selling pressure in realty, oil and gas, power, energy, banking, capital goods and FMCG counters amid lower Asian cues.
The Securities and Exchange Board of India (Sebi) directed stock exchanges to initiate action against 331 listed entities suspected to be shell companies. These companies will not be allowed to trade this month, according to a Sebi circular sent to exchanges on 7 August. Markets fell after the announcement.
The BSE mid-cap and small-cap indices too were down 0.86% and 0.95%, respectively. The Sensex resumed higher at 32,341.05 and moved in a range of 32,354.77 and 31.915.20 before quoting at 32,057.28 at 1100 hours, down 216.39 points, or 0.67%.
The NSE 50-share Nifty also traded lower by 62.20 points, or 0.62%, to 9,995.20 at 1100 hours. Major losers were SBI 1.94%, Coal India 1.53%, Kotak Mahindra Bank 1.51%, Dr Reddy’s 1.42%, NTPC 1.38%, ITC 1.30%, Power Grid 1.24% and ONGC 1.23%. However, Tata Steel and HUL rose 3.97% and 1.25%, respectively.
