A correction-bound BSE Sensex logged
its biggest fall in a month, slipping below the 31,000 mark
and plunging by 180 points to end at 30,958.25, as banking and
PSU stocks led the decline amid lacklustre global cues and
jitters ahead of GST rollout.
A correction-bound BSE Sensex logged
its biggest fall in a month, slipping below the 31,000 mark
and plunging by 180 points to end at 30,958.25, as banking and
PSU stocks led the decline amid lacklustre global cues and
jitters ahead of GST rollout.
The gauge had fallen 205.72 points on May 23.
The NSE Nifty ended 63.55 points lower, or 0.66 per cent,
at 9,511.40. Intra-day, it cracked below the 9,500-mark to
touch a low of 9,473.45 and hit a high of 9,615.40.
Sentiments took a beating as banking stocks melted
following reports that the RBI has asked banks for higher
provisioning for loans submitted under the insolvency process,
brokers said.
Investors took to offloading their positions ahead of
June expiry in the derivatives segment on Thursday and rollout
of GST on July 1.
"RBIs guideline to maintain higher provision against the
loans under the insolvency process has impacted the market
direction and plunged the market to test the support level of
9500. RBIs action will impact earnings potential for banks and
finally impact investor s expectation for FY18 earnings
growth," Vinod Nair, Head of Research, Geojit Financial
Services Ltd said.
He added that on the global front, Federal Reserve chief
Janet Yellen s speech today will be eagerly heard to get an
insight on the plan to trim the balance sheet and timing of
next rate hike.
After opening higher at 31,194.68, advanced to hit the
day's high of 31,294.96, the BSE Sensex slipped into the
negative zone on profit-booking and touched a low of
30,847.08.
The Sensex finally settled 179.76 points or 0.58 per cent
lower at 30,958.25, its lowest closing since May 25 when it
settled at 30,750.03. It had fallen by 152.53 points on
Friday. The stock exchange was shut yesterday on account of
'Id-Ul-Fitr'.
"After an extended weekend, trading began with a marginal
gap as indicated by the SGX Nifty. However, a strong selling
pressure in the initial hour dragged the index significantly
lower to close with a cut of 0.66 per cent over its previous
close. The banking conglomerates were among the major culprits
in today s weakness. Today s correction was no surprise as
market hinted towards it on Friday," said Sameet Chavan, Chief
Analyst-Technical and Derivatives, Angel Broking,
The market has been going through a consolidation phase
with participants opting to adopt a wait-and-see strategy and
kept their investments on hold.
Profit-booking by retail investors dragged down small-cap
and mid-cap indices by 1.57 per cent and 0.79 per cent,
respectively.
Shares of the largest state-run sector lender SBI plunged
3.27 per cent to Rs 279.40, followed by Axis Bank 2.34 per
cent to Rs 492.80. ICICI Bank fell 1.20 per cent to Rs 288,
Kotak Bank lost 1.13 per cent to Rs 974.30 and HDFC Bank down
0.63 per cent to Rs 1,667.90.
Syndicate Bank, Punjab National Bank, Bank of Baroda,
Federal Bank, Vijaya Bank, Canara Bank, Andhra Bank, Allahabad
Bank, Corporation Bank and Union Bank too fell by up to 4.97
per cent.
Other laggards were Asian Paint, Infosys, L&T, Bajaj
Auto, Cipla, TCS, M&M, Maruti Suzuki, Coal India, NTPC, Wipro,
Hind Unilever and PowerGrid, dragged down the key benchmark
from psychological 31,000-level.
Bucking the trend, Bharti Airtel, ONGC, Hero MotoCorp,
Tata Steel, Adani Ports, Lupin and ITC Ltd, ended higher and
cushioned the fall.
Among the sectoral indices, bankex fell the most by
losing 1.45 per cent followed by realty 1.40 per cent, PSU
1.32 per cent, capital goods 1.20 per cent, IT 1.12 per cent,
teck 0.91 per cent, power 0.66 per cent, auto 0.63 per cent
and healthcare 0.28 per cent.
Foreign portfolio investors (FPIs) picked up shares worth
a net Rs 269.95 crore last Friday, as per provisional data.
Domestic institutional investors (DIIs), however, net sold
shares worth Rs 45.78 crore.
Globally, European markets were lower after the president
of the European Central Bank, Mario Draghi, defended its loose
monetary policy and said a premature ending to easing could
lead to another recession. Stock markets in France, Germany
and the UK fell in early deals.
Asian shares ended mostly mixed with Hong Kong's Hang
Seng falling 0.12 per cent, while Japan's Nikkei ended higher
by 0.36 per cent and China's Shanghai Composite gained 0.18
per cent.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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