Sensex, Nifty tank on US-China trade talks failure; Suzlon Energy bleeds 12.5 pct

The stock market of India tanked around 1 per cent in the intraday trade on Monday as the trade talks between China and US failed to bring any breakthrough. The BSE Sensex tank 372 points after closing to 37,090 levels while the 50-stock Nifty nosedived 130 points and closed at 11,148 levels. The index Bank Nifty corrected 380 points and closed at 28,659 levels. Consumer durable major Suzlon Energy share price crashed near 12.5 per cent while Cadila Pharma stock lost to the tune of near 7 per cent.

Commenting on the market crash Mehul Kothari, Senior Technical Analyst at IndiaNivesh told Zee Business online, "The week kicked off on an extreme pessimistic note for the domestic markets following the plunge in world indices. The world markets corrected sharply on fears that the trade negotiations between the US and China were on the verge of failure." Giving market outlook and what an investor must keep his or her eye while watching the volatility of the market Kothari said, "Finally the range of 11550 – 11800 was breached decisively and the impact of the same was already witnessed where Nifty sneaked below 11300. In the coming week, 11,200 might act as an intermediate support for the index since even the intraday charts look exhausted. If the support is held then we expect a short covering move in the index. In such a scenario, 11,350 to 11,550 might act as strong resistance for the index in the coming week. However, if the support level is broken, 11,000 is the next support."

Healthcare stocks led the blood bath on Dalal Street today as the BSE Healthcare index went down more than 3.5 per cent. Healthcare major Cadila Healthcare crashed around 6.8 per cent, Alembic Ltd share price nosedived 2.28 per cent, Aurobindo Pharma shares dipped 4.44 per cent, Biocon stocks went down 2.8 per cent, Dr. Reddy's Laboratories counter went down 2.19 per cent, Dr Lal Pathlabs stock slide 1.76 per cent while Glenmark Pharmaceuticals stock price went down 3.8 per cent.

Consumer durable stocks also witnessed heavy selloff today as the BSE Consumer Durable index went down more than 2.5 per cent. Consumer Durable major Suzlon Energy crashed 12.5 per cent, BHEL stocks went down 5.15 per cent, NBCC (India) dipped 5.65 per cent, Graphite India shares went down over 5 per cent, Dilip Buildcon slipped3.9 per cent while V-Guard Industries counter went down over 1.4 per cent.

Asian stock also witnessed heavy selloff in the intraday trade. Japanese Nikkei 225 index went down 0.79 per cent, South Korean Kospi crashed 1.39 per cent, Hang Seng moved 0,84 per cent higher while the Shanghai index lost 1.21 per cent.