Selling pressure continued on the domestic bourses on weak global cues coupled with lingering concerns over the health of Indian banking sector, in the aftermath of a massive fraud unearthed at Punjab National Bank's (PNB) branch last month. The barometer index, the S&P BSE Sensex declined 284.11 points or 0.85% at 33,033.09, as per the provisional closing data. The Nifty 50 index fell 86.25 points or 0.84% at 10,163, as per the provisional closing data. The Sensex managed to close above 33,000 level on slight recovery in late trade, after falling below that level.
Bank stocks remained under the tight grip of bears as probe surrounding the massive banking fraud at PNB widened, with investigative agencies summoning top executives of banks. Metal and mining stocks nosedived on worries over import tariffs announced on steel and aluminum in US last weekend.
Both the Sensex, and the Nifty, dropped for the sixth straight session.
After a weak start, key benchmark indices extended slide, tracking weakness in global stocks, amid concerns of a potential global trade war in the aftermath of US President Donald Trump's last weekend's announcement of tariffs on steel and aluminum. Adding to global jitters, reports suggested that the Serious Fraud Investigation Office (SFIO) summoned top executives of ICICI Bank and Axis Bank in over Rs 12000-crore PNB fraud case as investigative agencies expanded their probe into the alleged bank fraud by companies linked to Nirav Modi and his uncle Mehul Choksi.
The Sensex fell 326.06 points, or 0.98%, at the day's low of 32,991.14 in late trade, its lowest level since 18 December 2017. The index rose 14.01 points, or 0.04%, at the day's high of 33,331.21 in morning trade. The Nifty lost 107.70 points, or 1.05%, at the day's low of 10,141.55 in late trade, its lowest level since 18 December 2017. The index fell 5.9 points, or 0.06%, at the day's high of 10,243.35 in morning trade.
Among secondary indices, the S&P BSE Mid-Cap index provisionally fell 1.32%. The S&P BSE Small-Cap index provisionally declined 2.16%. Both these indices underperformed the Sensex.
The breadth, indicating the overall health of the market, was quite weak. On the BSE, 2,218 shares declined and 519 shares advanced. A total of 128 shares were unchanged.
The total turnover on BSE amounted to Rs 3437.92 crore, compared with the turnover of Rs 3320.83 crore registered during the previous trading session.
State-run lending major State Bank of India (SBI) tumbled 3.61% at Rs 247.25.
Index heavyweight Reliance Industries (RIL) fell 1.93% at Rs 893.35.
Metal and mining stocks tumbled on worries over import tariffs announced on steel and aluminum in US last weekend. Hindustan Copper (down 6.24%), Steel Authority of India (down 2.57%), Vedanta (down 1.29%), Tata Steel (down 1.59%), Hindustan Zinc (down 1.21%), Hindalco Industries (down 0.64%), JSW Steel (down 1.06%), and Jindal Steel and Power (down 0.43%) edged lower. Nalco (up 0.64%) and NMDC (up 0.65%) edged higher.
Overseas, major European and Asian equity indices declined as global trade war concerns intensified in the aftermath of US President Donald Trump's last weekend's announcement of tariffs on steel and aluminum. In economic news, Japan's leading index, which measures the future economic activity, dropped to 104.8 in January from 106.6 in December, which was revised down from 107.4, preliminary figures showed today, 7 March 2018.
US stocks closed higher yesterday, 6 March 2018 but Wall Street remained on edge over an ongoing debate over tariffs proposed by President Donald Trump.
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