Published On: Tue, Mar 6th, 2018

Indian equity indices fall sharply as banking stocks tank

Mumbai: Despite earlier gains, the key Indian equity indices closed in the red on Tuesday as banking stocks tanked substantially and investors also continued to trade with caution.

Market gave up gains despite positive trade in global market

The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 33,317.20 points — down 429.58 points, or 1.27 per cent, from its previous close of 33,746.78 points.

Similarly, the wider Nifty50 of the National Stock Exchange (NSE) also plummeted by 109.60 points, or 1.06 per cent, to close at 10,249.25 points.

In the intra-day, the S&P BSE Sensex touched a high of 34,060.13 points and a low of 33,209.76 points.

“Early positivity that rode on global markets’ pull back proved to be brief, as turmoil in banking sector and persistent selling by FIIs dragged stocks lower,” said Anand James, Chief Market Strategist, Geojit Financial Services.

Banking stocks fell as ICICI Bank chief Chanda Kochhar and Axis Bank’s Shikha Sharma had been summoned by Serious Fraud Investigation Office in Mumbai in the bank fraud case involving jeweller Nirav Modi and his partner and uncle Mehul Choksi.

“Market gave up gains despite positive trade in global market. Consolidation continues led by broad selling across all sector. Market has broken ye’terday’s low while banks continue to struggle due to NPA issue, higher bond yield & cost of funds. Investors are little nervous to start accumulating and are waiting for major triggers to get direction,” said Vinod Nair, Head of Research, Geojit Financial Services.

Sector-wise, almost all the sectors ended in red. Major selling pressure was seen in banking, capital goods, auto and realty sectors.

S&P BSE banking index plummeted by 1.44 per cent, capital goods index by 1.31 per cent, auto index by 1.36 per cent and realty index by 2.21 per cent.

Only consumer durables sector remained in the green.

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