The BSE Sensex and NSE Nifty closed 235.63 points and 63.25 points lower at 27,866.09 and 8,462.35, respectively, led by declines in banking stocks after State Bank of India’s quarterly results disappointed investors.

State Bank of India shares tanked over 5.16 per cent to Rs 268.50 on Tuesday after its April-June net interest income and fresh slippages disappointed investors. The bank reported a net profit of Rs 3,692 crore, up by 10.2 per cent year-on-year on standalone basis. It reported a increase in net NPA on a sequential basis to 2.24 per cent for first quarter of 2015-16.

Investors also turned jittery over the logjam in Parliament about the key goods and service tax (GST) bill and global volatility after China unexpectedly devalued its currency.

With only two days for Parliament’s monsoon session to end, investors worry that a key reform on goods and services tax might get delayed amid continued protests by the Opposition.

“The disruption in Parliament and the Chinese currency devaluation has created nervousness,” G Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm said.

Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “The continuing fear about the possible derailment of proposed reforms is leading to sustained consolidation in the market. Subsequently, the additional risk from the devaluation of yuan is impacting metal & mining stocks. In the immediate period, the outcome of CPI and IIP numbers on August 12 will provide the essential support to the market. IIP is likely to inch to 3.3 per cent in June compared to 2.7 per cent in May, while CPI is likely to substantially lower to 4.4 per cent in July compared to 5.4 per cent in June.”

Among the sectoral indices on the Bombay Stock Exchange, the BSE Metal index plunged the most — 3.52 per cent at 8,280.50, it was followed by the BSE Realty (down 1.69 per cent at 1,424.63) index and BSE Bankex (down 1.53 per cent at 21,356.12). On the other hand, BSE IT index and BSE TECk index gained 1.38 per cent and 0.93 per cent at 11,276.07 and 6,278.59, respectively.

Shares of Tata Steel, State Bank of India, Tata Motors, Hindalco and Coal India dipped 5.30 per cent, 5.25 per cent, 4.63 per cent, 4.22 per cent and 3.74 per cent, respectively, in the 50-share Nifty index.

On the other hand, Infosys (up 2.67), Tech Mahindra (up 2.06 per cent) and Bosch (up 2.03 per cent) remained top performers in the benchmark index.

Among day’s major market impacting events, China’s central bank devalued its currency Yuan by 2 per cent on Tuesday in a major move to help the dwindling growth rate of the global manufacturing powerhouse. This caused the currency witness its biggest loss in almost two decades. The move indicated towards the continued government’s worry about slower growth rate of China.

Hiren Dhakan, associate fund manager, Bonanza Portfolio, said, “The move would incentivise Chinese exports and put pressure in several other global markets. The move comes at a time the government has almost failed in previous efforts which didn’t prove to be fruitful.”

Asian peers ended in red following the weak signals from Chinese markets. Nikkei, Hang Seng and Shanghai closed 0.42 per cent, 0.09 per cent and 0.01 per cent, respectively, down on Tuesday.

(With inputs from Reuters)