Mumbai: The BSE Sensex fell 590.05 points and ended at 17,968.08, while the Nifty slumped 189 points at 5287.45 on Tuesday, giving up nearly all gains made over the previous three sessions.
Housing Development Finance Corp Ltd (HDFC.NS) ended down 7.8 per cent, while ITC Ltd (ITC.NS) lost 3.12 per cent.
The broader Nifty tanked 3.45 per cent, while the benchmark BSE Sensex slumped 3.18 per cent, snapping their three-day winning streak.
Neelkanth Mishra of Credit Suisse says that for FY14, the expected Nifty EPS still has 5-6 per cent potential downside.
"Overall earnings missed by 2 per cent. Disappointments in industrials and energy offset positive surprises elsewhere. We expect further downside to Nifty EPS led by cuts in financials, material and industrials. Stay overweight on IT, pharma, staples and energy," Mishra adds.
The rupee has hit a new record low on Tuesday, breached past 66.07 against the US dollar.
Pramit Brahmbhatt, CEO of Alpari India feels that month-end dollar demand from oil importers will put further pressures on the rupee. However, selling of dollar by state sponsored banks might reverse the trend, he adds. He also says that the rupee may breach recent lows if overall sentiment does not improve.
HDFC and HDFC Bank shares dropped 5 per cent each while top lenders State Bank of India and ICICI Bank declined 1-2 per cent.
Commercial vehicle maker Tata Motors, utility vehicle major Mahindra & Mahindra and top car maker Maruti Suzuki lost over 2.5 per cent. FMCG majors ITC and Hindustan Unilever slid 1.4 per cent each.
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