Buffeted by a string of negative developments, the Indian markets came under renewed selling pressure with the financials and interest rate sensitive sectors bearing the brunt of selling.
It was however the IT sector that provided some relief with the major IT stocks posting gains and the CNX IT index staying firm with a gain of about 114 points.
What weighed with the global investors appears to be the possible shutdown of the US Government because of the showdown between the Conservatives and Democrats over Obamacare.
With just about a week remaining to find an amicable solution, fears of government shutdown led to a sharp decline in the US markets on Friday and the impact is being felt among the Asian markets that are open today, including India.
The Indian markets, apart from the US developments, also seem to have been hit by the growing concerns over interest rates remaining high, and as the market expiry is due this week.
Though the Nifty itself was down by about 110 points, the IT frontliners remained firm, providing some stability to an otherwise weak market with stocks such as HCL Tech, TCS and Infosys making gains.
HCL Tech gained Rs 28.40 to trade at Rs 1,090.20. Infosys was up by Rs 29.20 at Rs 3,024.35 and TCS jumped by Rs 16.45 at Rs 1,966.75. Hero MotoCorp was a major non-IT gainer, up by Rs 18.25 at Rs 1,999.90.
Financials and auto stocks were among the major losers. M&M shed Rs 15.70 to trade at Rs 858.50, Tata Motors was down by Rs 3.95 at Rs 334.40 and Maruti lost Rs 56.05 at Rs 1411.20.
Bank stocks were also badly hit. HDFC Bank was down by Rs 21.70 at Rs 637.35, ICICI Bank shed Rs 40.25 at Rs 947, SBI lost Rs 86.55 to trade at Rs 1,661 and Axis Bank lost Rs 56.25 to trade at Rs 1,046.10 and Kotak Mahindra Bank was down to Rs 717.55, a loss of Rs 30.65.
What added to market nervousness further was the report by many brokerages that the RBI may tighten the interest rates further to rein in inflation.
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