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SBI, Tata Steel shares drag Sensex 163 points down

Friday, 9 November 2012 - 10:19am IST Updated: Friday, 9 November 2012 - 5:12pm IST | Place: Mumbai | Agency: PTI
Falling for the second straight day, the BSE benchmark Sensex tanked by 163 points as 3-4% losses in SBI, Tata Steel and ONGC shares on muted September quarter performance soured the sentiment.

Falling for the second straight day, the BSE benchmark Sensex on Friday tanked by 163 points as 3-4% losses in SBI, Tata Steel and ONGC shares on muted September quarter performance soured the sentiment, amid a weak global trend.

The Sensex, which had lost 56 points in the previous session, opened higher at 18,894.42 but failed to sustain the initial momentum to close 162.58 points, or 0.86%, lower at 18,683.68.

On similar lines, the National Stock Exchange index Nifty fell by 52.50 points, or 0.91%, to 5,686.25 led by stocks in realty, metal, oil & gas and banks.

Brokers said the market remained in bearish mode as State Bank of India reported an increased in bad loans and ONGC posted a steepest fall in quarterly profits in almost 4 years.

SBI shares plunged 3.89% to Rs2,156.35 and ONGC fell 3.05% to Rs257.10. Reliance Industries and Infosys also closed down one percent each.

Tata Steel reported consolidated loss of Rs363.90 crore for the July-September quarter, as against net profit of Rs212.40 crore in the same quarter last fiscal. Its shares closed over 3.2% down.

"What is worrying markets are the slippages and loan restructuring the banking sector could face in coming quarters... Tata steel disappointed with lower than expected numbers," said Nagji K Rita, CMD, Inventure Growth & Securities.

In the 30-share Sensex, 28 stocks closed with losses while Cipla and Maruti Suzuki ended with gains. Realty sector index suffered the most among sectors as investors judged the recent gains as excessive.

A similar weak trend in Asia and Europe further influenced the domestic market sentiment, traders added.




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