Barring FMCG, heavy sell-off was witnessed across all the sectors. However, morning losses were capped to a major extend by short recoveries and good results from heavyweights like ITC, Reliance Industries and Bharti Airtel.
Global markets experienced sell-off post US president Barack Obama announcement on banks.
But short covering and good results from heavyweights ITC, Reliance Industries & Bharti Airtel managed to trim more than 50% morning losses. The Nifty also clawed back above the psychological 5,000 mark; BHEL, Idea Cellular, HCL Tech, Jindal Steel and Hero Honda were the only gainers.
The markets reported highest ever turnover today of Rs 1,59,492.39 crore. This included Rs 20,562.43 crore from the NSE cash segment, Rs 1,32,392.09 crore from the NSE F&O and the balance Rs 6,537.87 crore from the BSE cash segment.
Mukesh Ambani's flagship company reported an increase of 14.48pc rise in its net profit at Rs 4,008 crore and 80.13pc jump in net sales of Rs 56,856 crore against the estimates of Rs 3,954.60 crore on the net profit and Rs 48,785 crore on the net sales.
Gross refining margin (GRM) also outperperformed market estimates, at USD 5.90 a barrel versus USD 6 a barrel in second quarter of FY10. Expecting a better refinign margins in 2010 RIL said there was strong local demand growth in Petrochem.
Cigarette major, ITC gained 1.88pc on the back of good set of numbers and reported an increase of 26.7pc rise in its Q3 net profit of Rs 1,144.17 crore and its net sales jumped 18.22% to Rs 4,531.85 crore.
The numbers were above the street expectations of Rs 1,082 crore on the net profit and Rs 4,425 crore on the sales. Cigarette and FMCG revenues increased 17pc and 23pc, respectively.
India's largest telecom player, Bharti Airtel also reported numbers in-line with estimates and reported a 3.66pc decline in its Q3 net profit of Rs 2,236 crore and its net sales jumped 4.66pc to Rs 10,304 crore.
Sensex recovers, RIL marginally in green
Nifty was continued to trade under pressure on the back of consistent selling in banking, technology, pharma, metal, realty, cement, auto and power stocks along with ONGC and L&T.
At 1:33 pm, Sensex declined 128 points and was trading at at 16,922, Nifty was down 42.5 pts at at 5,051.
Among the Largecaps,BHEL,up 3.5pc, Idea Cellular gained 3.7pc, Siemens surged 1.5pc and HUL with 0.5pc were outperforming others.
Heavyweights Reliance Industries and Bharti Airtel were marginally green after being under pressure in the early trade.
In the banking space, Kotak Mahindra slipped 3.6pc, Axis Bank, HDFC Bank, SBI and ICICI Bank lost 1.3 to 1.6pc. Bank of Baroda and PNB were down 0.3 to 0.4pc.
Among the pharma stocks, Ranbaxy Labs and Dishman Pharma lost 4pc each, while Sun Pharma and Cipla tanked over 2pc.
In the metal space, NALCO, Tata Steel, JSW Steel and SAIL declined 2.4 to 3.8pc, while Hindalco was down 0.68pc.
The most active shares in the bourses were Reliance Industries, L&T, Hindustan Copper, SpiceJet, Tata Steel, Essar Oil and SBI.
In the midcap space, Monsanto India, M&M Financial, STC India, Indiabulls Financial and Indraprastha Gas increased 3 to 7pc. However, KGN Industries, Financial Tech, Peninsula Land, Gujarat NRE Coke and Punj Lloyd lost 5pc each.
In the smallcap space, SpiceJet was up 10pc, along with Kwality Dairy, Dynamatic Tech, KPR Mill and Solvay Pharma surged of 7 to 9pc.
Oil Country, Gati, Welspun India, Ceat and Advani Hotels declined 6 to 11pc.
Sensex over 200 pts down
Sensex was trading below the 17,000 mark although it showed some good recovery. Nifty bounced back to 5000 mark.
The leading sector in this downtrend was Bharti Airtel, which was performing slightly above the estimates.
At 10:22 am, BSE Sensex nosedived 244 pts to trade at 16,806, down 244 points and the Nifty was at 5,015, down 78 points.
In the Largecap space, Idea Cellular (better than the expected numbers) and BHEL outperformed other, while ITC too was ahead of its expected number.
In the Midcap space, Atlas Copco, Monsanto India, UTV Software, Indiabulls Financial and Jagran Prakashan gained 1.8 to 3.6pc. However, Shriram City, Asian Star, Sobha Developer, National Fertiliser and HMT were down 5.7 to 7.5pc.
In the Smallcap space, KPR Mill, Kwality Dairy, SpiceJet, Kanani Industries and Solvay Pharma moved up 5 to 8.5pc.
Oil Country, Welspun India, Rain Commodities, Vindhya Telelink and Kaveri Seed declined 8 to 12pc.
Post the Brack Obama's comment on banks, US market was rattled which exerted selling pressure in the Asian market. Shanghai, Nikkei, Hang Seng, Straits Times, Taiwan, Kospi and Jakarta lost 2 to 2.5pc.
11: 50 AM
Nifty opens under selling pressure; L&T dips 5pc
The selling pressure on Jan 21 carried over to Jan 22 when Nifty opened owing to negative global cues.
At 9:02 am, Nifty was trading at at 4,998, down 95 points and the Sensex was at 16,742, down 308 points.
Among the frontliners, L&T was down 5.3pc agin on Jan 22 and in two days lost 200 on a disappointing number.
The other losers include Suzlon, JP Associates, Tata Power, ABB, Siemens, DLF, IDFC, ICICI Bank, Reliance Power, Tata Motors, SAIL, Jindal Steel and Hindalco.
Performing below the market expectation, ONGC was reportedly 2 pc down. ITC was flat. Idea reported a good numbers, while Axis Bank fared better than the other, with comparatively less lost.
Midcap and Smallcap:
Essar Oil lost 2.5pc.
Divestment candidates - FACT, NMDC, ITI and STC India slipped 5pc each.
Tech Mahindra and Mahindra Satyam lost 1 to 2pc.
Alok Industries slipped 4pc and HDIL fell 3.4pc, Brigade Enterprises was down 2.5pc and Indiabulls Real declined 3.5pc. Puravankara fell 4pc.
Post President Barack Obama's announcement of investment, the US markets rattled biggest second-day drop since June on increased bank regulation in US & tighter monetary policy in China.
The Dow Jones dipped 213 points or 2 pc at 10,390. The NASDAQ was down 25.5 points or 1.12pc at 2,265 and the S&P 500 was down 21.5 points or 1.9pc at 1,117.