A flash 900-point crash in NSE Nifty index and concerns overthe fate of big-ticket reforms like raising the FDI cap in insurance, snapped afour-day rally with BSE Sensex falling 120 points to end below 19K level today.
After gaining around 488 points in past four sessions, theBSE benchmark index opened higher at 19115.89 after the government yesterdayunleashed another round of reforms.
However, the Sensex soon dropped over 200 points mirroring a900-point fall in NSE Nifty due to a technical glitch caused by sell ordersworth Rs 650 crore executed by broker Emkay Global Financial Services.
This halted trade in cash market for 15 minutes, hittingsentiment.
Besides, investors weighed up the fate of the big-ticketeconomic reforms announced yesterday as some legislations are likely to facestiff opposition in Parliament before final ratification, brokers said.
The 30-share Sensex closed 119.69 points down, or 0.63 percent, at 18,938.46. The Nifty closed at 5,746.95, down 40.65 points or 0.70 percent.
"A healthy up move, on back of fresh reforms, wasexpected in markets today. However, the initial euphoria evaporated due toconfusion due of erroneous trades on NSE near start of the day," saidMilan Bavishi, Head Research, Inventure Growth & Securities.
Importantly, the some bills need to be approved byParliament before becoming a reality and notably, the main opposition party,BJP, seems opposed to raising the FDI limits, said Edelweiss in a report.
HDFC, which lost 4.55 per cent, was the worst hit amidreports that global fund house Carlyle has sold a big chunk of its 3.7 per centstake today. Wipro, Sun Pharma, Infosys and ICICI Bank were other major losers.
Dealers said gains in Tata Motors, Hindustan Unilever, ONGCand L&T helped the Sensex to pare losses.
Meanwhile, the rupee traded weaker at 51.81 to the dollar,from its last close of 51.74.