Sensex tanks 490 points to close at 3-week low

Stocks of capital goods, metal, auto, banking, consumer durables, FMCG and refinery declined sharply on heavy selling pressure.

Extending losses for the seventh day in a row, the benchmark BSE Sensex on Monday tanked 490 points to close at about three-week low of 28,227.39 after exit polls predicted BJP's defeat in Delhi elections and weaker-than- expected results by corporates like L&T.

Besides, the rupee weakened against the dollar to over three-week low of 62.20 (intra-day) on sustained capital outflows which dampened market sentiments.

Stocks of capital goods, metal, auto, banking, consumer durables, FMCG and refinery declined sharply on heavy selling pressure.

Disappointing corporate earnings and caution ahead of GDP data for December quarter also cast a shadow on trading sentiments, brokers said.

"Markets reacted negatively to exit polls on Delhi election, which indicates the Aam Aadmi Party would form the government in Delhi and that would be the first state election defeat of party ruling in Centre, post Lok Sabha election," said Jayant Manglik, President-retail distribution, Religare Securities Ltd. Announcement of "weaker than expected corporate earnings from infra major L&T" worsened the sentiments in the end, he added.

Larsen & Toubro fell the most by 6.61 per cent among 30 Sensex scrips after it reported 8.7 per cent rise in consolidated net profit at Rs 866.54 crore for the third quarter of 2014-15.

"Exit polls are indicating majority of AAP in Delhi. Weak quarterly results in some stocks, mixed global cues, profit booking and speculations ahead of election results have made investors cautious," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.

The Sensex resumed lower at 28,566.50 and dropped further to 28,183.32 before finishing at 28,227.39, showing a loss of 490.52 points or 1.71 per cent.

This is its weakest closing since January 16. The CNX 50-share Nifty also fell by 134.70 points or 1.56 per cent to 8,526.35.