The benchmark Sensex fell 250 points slipping below 36,000-level as most of the heavyweight shares tumble with stocks of SBI, Dr Reddy's, Bharti Airtel and TCS falling 2-5% in the afternoon trades on Thursday.
The benchmark Sensex fell 250 points slipping below 36,000-level as most of the heavyweight shares tumble with stocks of SBI, Dr Reddy’s, Bharti Airtel and TCS falling 2-5% in the afternoon trades on Thursday. S&P BSE Sensex plunged 251.34 points to hit a day’s low 35,910.3 while NSE Nifty shed as much as 76.8 points to hit the day’s low of 11,009.2. Shares of India’s largest bank State Bank of India emerged as the biggest losers among the Sensex stocks diving as much as 5% followed by Dr Reddy’s Laboratories, Bharti Airtel and Yes Bank. Today morning, the domestic stock markets opened little higher with Sensex and Nifty starting at fresh highs but both the key indices very quickly swung into losses within seconds of beginning trades following caution over F&O expiry.
Shares of Dr Reddy’s Lab fell 4.01% to the day’s low of Rs 2,458.95 after the drugmaker reported a 38.51% decline in consolidated net profit to Rs 302.7 crore for the third quarter ended 31 December 2017 while the shares of IT major TCS dropped 2.32% to Rs 3,101; Bharti Airtel lost 2.37% to the day’s low of Rs 448.05. The stock of Coal India was the only notable gainer among the Sensex components. At the time of writing, Coal India shares were trading up 2.2% at Rs 301.5. Among the broader market indices of NSE, Nifty Next 50, Nifty Midcap 50, Nifty 100, Nifty 200, Nifty 500, Nifty, Nifty Mid100 Free, and Nifty Small100 Free lost 0.4-0.8% while India Vix shed 5%. Out of the sectoral indices of NSE, nine sectoral indices were trading in the red with Nifty PSU Bank, Nifty IT and Nifty Realty index losing the most. Among the group ‘A’ of BSE, shares of Jindal Saw, Crompton Greaves, PNB, Syndicate Bank, Indian Bank, Union Bank shed 4-8%.
Shares of State Bank of India and Punjab National Bank were trading heavily with their collective turnover crossing Rs 1,000 crore in the mid-morning trades on Thursday after Arun Jaitley detailed PSU bank recap plan yesterday. As at 1:50 pm, about Rs 1,375 crore worth of shares of SBI and PNB were traded on National Stock Exchange. Both the shares tanked up to 6% in Thursday’s trade with State Bank of India losing 5.09% to the day’s low of Rs 313.1 while Punjab National Bank tripping 6.42% to the day’s low of Rs 182.5. Amid the heavy trading volumes, about 2.29 and 2.37 crore shares of SBI and PNB exchanged hands on NSE. In the opening session, BSE Sensex started the day at 36,208.39 up by 46.75 points while NSE Nifty began at 11,095.6, up by 9.6 points.
In a press conference held on Wednesday, the Finance Minister Arun Jaitleydetailed about the Modi government’s mega plan of Rs 2.11 lakh crore to recapitalise the NPA-laden PSU banks. The Finance Secretary Rajiv Kumar laid down 6-point reforms for the PSBs and said their performance will be under the annual assessment. Out of the 21 PSBs, IDBI Bank emerged as the biggest beneficiary as the bank was allocated a whopping Rs 10,610 crore followed by Bank of India (Rs 9,232 crore), SBI (Rs 8,800 crore), UCO Bank (Rs 6,507 crore), Central Bank of India (Rs 5,158 crore) and PNB (Rs 5,473 crore)from the government.