The Sensex plunged over 350 points in afternoon trade and Nifty fell below the 11,000 mark hit by Tata Motors' biggest ever quarterly loss at home amid lower Asian markets after President Donald Trump said he doesn't plan to meet Chinese leader Xi Jinping before a tariffs truce ends in March. While the Sensex fell 382 points to 36,589, the Nifty lost 114 points to 10,955 level.
Of 30 Sensex stocks, 27 were trading in the red. Tata Motors (18.10%), Vedanta Ltd (3.67%) and L&T (2.44%) were the top Sensex losers.
The Tata Motors share price crashed after the homegrown auto firm reported a consolidated net loss of Rs 26,960.8 crore for the third quarter ended December 31, hit by asset impairment in its British arm Jaguar Land Rover (JLR). This is the firm's biggest ever quarterly loss compared to net profit of Rs 1,214.6 crore in the October-December quarter of 2017-18.
The Tata Motors share price tanked to a fresh 52-week low of 141.90, down 22.41% or 41 points compared to the previous close of 182.90. Later, the Tata Motors share price was trading 17% lower to 151.65 on the BSE. The Tata Motors share was the top Sensex and Nifty loser in afternoon trade.
Kotak Bank (1.13%), HCL Tech (0.37%) and HDFC Bank (0.52%) were the top Sensex gainers.
The BSE midcap index fell 165 points to 14,366 level. The small cap index too lost 92.32 points to 13,686 level.
Market breadth was negative with 821 stocks rising against 1450 stocks falling on the BSE.
"We have had a strong run. Nifty was trying to breakthrough the upper band of 10,968, and it has done so convincingly despite an avalanche of promoter-related issues and re-surfacing of stress at certain HFCs (housing finance companies)," said Sunil Sharma, chief investment officer, Sanctum Wealth Management.
"Also, markets have an RBI (Reserve Bank of India) that is aligned with the government. More importantly, both fiscal and monetary policies are supportive of equity markets now," Sharma added.
Losses were led by auto stocks with the BSE auto index crashing 559 points to 19043 level. BSE capital goods indx too lost 239 points to 16,940 level. Negative sentiment from the Tata Motors stock spread across the auto sector stocks in trade today.
Other major losers were metal stocks with BSE metal down 216 points to 10,413 level.
On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 418.01 crore on Thursday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 294.11 crore, provisional data available with BSE showed.
Asian markets tumbled on Friday after President Donald Trump said he doesn't plan to meet Chinese leader Xi Jinping before a tariffs truce ends in March. Hong Kong's Hang Seng, reopening after a Lunar New Year break, gave up 0.8 percent to 27,757.40. The Kospi in South Korea declined 1.2 percent to 2,177.04 and Australia's S&P ASX 200 was down 0.4 percent at 6,067.60. Stocks fell in the Philippines, Indonesia and Singapore but rose in Malaysia. Markets in China and Taiwan were closed.
Edited by Aseem Thapliyal