Sensex cracks below 28k-mark; tumbles 236 pts to 2-week low

Sensex cracks below 28k-mark; tumbles 236 pts to 2-week low

Sensex cracks below 28k-mark; tumbles 236 pts to 2-week low

Market extended losses today for the third straight session as the benchmark BSE Sensex slipped by 236 points to close below the 28,000-level on persistent fear about the possible derailment of key economic reforms and disappointing set of earning numbers from state-run SBI.

With only two days remaining in the Monsoon Session, participants worry that a key reform bill on goods and services tax might get delayed.

Rajya Sabha was adjourned for the day after the government moved the GST Bill. Gaurav Jain Director Hem Securities said: "Disappointing income posted by SBI hurts the hopes of the street. Continued fall in the commodity prices and weakening rupee has dampened the sentiments further.

Rupee falling 40 paise against dollar to 64.27 intra-day, queered the pitch further. After a solid start, the BSE barometer advanced to hit the day's high of 28,205.12, but gave up all its gains before ending 235.63 points or 0.84 per cent down at 27,866.09 -- its weakest closing since July 30.

The gauge has lost 432.04 points in last three sessions. The 50-share Nifty gave in to selling pressure and settled the day lower by 63.25 points or 0.74 per cent at 8,462.35.

State Bank of India slumped 4.87 per cent despite posting a 5.9 per cent increase in net profit for the June quarter on the back of a decline in bad loans.

Selling also emerged in other state-owned banking stocks such as PNB and Bank of Baroda. "... the additional risk from the devaluation of Yuan is impacting metal and mining stocks," said Vinod Nair, Head of Fundamental Research at Geojit BNP Paribas Financial Services. Metal stocks bore the brunt after base metals retreated in global markets after China devalued its currency.

Moreover, realty, banking, auto, capital goods and refinery stocks declined. Bucking the trend, IT stocks including Infosys, TCS and Wipro, which get their revenues in dollar, rose up to 2.07 per cent, backed by a rising greenback. In line with overall trends, small-cap and mid-cap indices fell 1.13 per cent 0.46 per cent, respectively.

Major Asian markets ended in the red. European markets were down too in their early trade. Asian stocks ended lower after China's central bank moved to devalue its tightly controlled currency. Key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan fell between 0.01 per cent and 1.36 per cent.

European stocks were trading lower with investors assessing China's unexpected devaluation of the yuan. Key indices like France, Germany and the UK also fell by 0.83 per cent to 1.26 per cent.
In the domestic market, 23 stocks out of the 30-share Sensex pack ended lower.

Major losers included Tata Steel 5.46 per cent, Hindalco 4.22 per cent, Tata Motors 4.16 per cent, Coal India 3.85 per cent, Vedanta 3.05 per cent, ICICI Bank 2.50 per cent, HUL 1.83 per cent, ONGC 1.69 per cent, BHEL 1.59 per cent, M&M 1.56 per cent, HDFC 1.46 per cent, Bharti Airtel 1.28 per cent, L&T 1.07 per cent and Axis Bank 1.01 per cent.

While, Infosys rose by 2.07 per cent and TCS 1.25 per cent. Among the BSE sectoral indices, metal fell by 3.52 per cent, followed by realty 1.69 per cent, bankex 1.53 per cent, auto 1.32 per cent, capital goods 1.23 per cent and oil&gas 1.11 per cent.

The market breadth continued to remain negative as 1,900 stocks closed lower, 990 stocks finished higher while 99 stocks ruled steady. Total rose to Rs 3,888.80 crore from Rs 3,104.69 crore yesterday.

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