Sensex Falls 351 Points; Unitech, Jaiprakash Associates Crash

Indian stock markets closed with big losses for a second straight day amid a crash in many midcap stocks. The Sensex closed below the psychological 27,000 level for the first time since May 12, 2015.

Here are 10 must-know developments about the selloff in markets today:

1) The Sensex, which fell as much as 490 points in intraday trade, ended at 26,837 after falling 351 points or 1.3 per cent. The Nifty, which declined as much as 140 points, settled at 8,135.

2) The big talking point in markets today was the selloff in many well-known midcap names. Property stocks, in particular, came under sharp selloff; the realty sub-index on the BSE plunged nearly 10 per cent in intraday trade. Many companies that came under selloff are heavily leveraged.

4) Other midcap stocks to fall sharply, and with large volumes, included Suzlon (-9.4 per cent), Adani Power (-10.8 per cent), Reliance Power (-11.35 per cent) and HCC (-12.3 per cent). According to Jagdish Malkani (member NSE), midcap and small cap shares had gained sharply, so there might be an element of profit taking today. Fund manager Sandip Sabharwal said there could be more downsides in midcaps.