Banking fraud subdues risk-taking appetite, equities close lower

Although both indices - BSE Sensex and NSE Nifty50 - recouped some losses during the late afternoon trade session on short covering, they failed to exit the negative territory and closed on a lower note.

IANS
Mumbai, Publish Date: Feb 20 2018 1:07AM | Updated Date: Feb 20 2018 1:07AM
Banking fraud subdues risk-taking appetite, equities close lowerRepresentational Pic

The recent turbulent developments in the country's banking sector kept investors' risk-taking appetite low, leading the key Indian equity indices to close in the negative territory for the fourth consecutive trade session on Monday.

According to market observers, heavy selling pressure in capital goods, auto, metals and banking stocks, along with continued outflow of foreign funds and a surge in crude oil prices, dampened market sentiment despite positive global cues.

Although both indices -- BSE Sensex and NSE Nifty50 -- recouped some losses during the late afternoon trade session on short covering, they failed to exit the negative territory and closed on a lower note.

The wider Nifty50 of the National Stock Exchange (NSE) shed 73.90 points or 0.71 per cent to close at 10,378.40 points. 

During the intra-day trade, the barometer 30-scrip Sensitive Index (Sensex) of the BSE fell by over 400 points to touch a low of 34,122.96 points.

On a closing basis, the Sensex declined by 236.10 points, or 0.69 per cent, to 33,774.66 points.

The BSE market breadth was bearish as 2,061 stocks declined as against 689 advances.

In terms of broader markets, the S&P BSE mid-cap index closed lower by 1.05 per cent and the small-cap index by 0.99 per cent.

"Markets corrected further on Monday. A sharp bounce back from the lows in the afternoon session curbed the losses," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.

"Sentiments continued to be affected by the recent detection of a massive fraud at a Mumbai branch of the state-run Punjab National Bank (PNB). Metal stocks (especially Steel) came under selling pressure as investors got concerned over the funding arrangement for bids for sick companies by sector leaders," he said.

According to Jasani, fresh rise in global crude prices also marred sentiments. 

Vinod Nair, Head of Research, Geojit Financial Services, said: "Weak domestic cues continued to impact investor's sentiment and directed the market to consolidation. PSU banks are likely to remain under pressure due to the current irregularities while participants are taking a wait-and-watch approach until the storm settles."

On the NSE, the Nifty PSU Bank index declined by 2.46 per cent.

Following recent developments in the $1.8-billion fraud detected by the PNB, shares of Gitanjali Gems plunged almost 10 per cent while those of the bank closed lower by over 7 per cent on Monday.

"Volatility may increase ahead of F&O (futures and options) expiry, however stock specific approach during this consolidation will give long term benefit," Nair added.

In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 895.79, crore while domestic institutional investors purchased stocks worth Rs 586.52 crore.

All the sub-indices of the BSE closed in the red led by S&P BSE capital goods -- down 299.69 points -- followed by auto (down 275.19 points), metal (down 241.52 points) and banking (down 162.98 points) indices.

Major Sensex gainers on Monday were: Coal India, up 0.54 per cent at Rs 304.65; Infosys, up 0.46 per cent at Rs 1,130; Kotak Bank, up 0.45 per cent at Rs 1,056.50; Reliance Industries, up 0.45 per cent at Rs 925.85; and Axis Bank, up 0.32 per cent at Rs 539.45.

Major Sensex losers were: Tata Steel, down 5.82 per cent at Rs 648.25; Dr Reddy's Lab, down 2.75 per cent at Rs 2,151.85; Adani Ports, down 2.72 per cent at Rs 393.40; Larsen and Toubro, down 2.35 per cent at Rs 1,296.75; and Mahindra and Mahindra, down 2.24 per cent at Rs 727.10. The currency markets were closed on Monday for Chhatrapati Shivaji Maharaj Jayanti. 

Latest News

  1. Mansbal blast: Police doesn’t rule out use of explosive material
  2. Mansbal blast: Police doesn’t rule out use of explosive material
  1. Ceasefire ‘drama’ was made to achieve covert targets: Lashkar-e-Toiba
  2. Ceasefire ‘drama’ was made to achieve covert targets: Lashkar-e-Toiba
  1. Youth shot dead by unknown gunmen in Kulgam in south Kashmir
  2. Youth shot dead by unknown gunmen in Kulgam in south Kashmir
  1. Four civilians injured in mysterious blast at Manasbal park
  2. Four civilians injured in mysterious blast at Manasbal park
  1. No let up in oppression even on Eid day: Yasin Malik
  2. No let up in oppression even on Eid day: Yasin Malik
  1. Policeman injured in Kak Sarai attack continues to be critical
  2. Policeman injured in Kak Sarai attack continues to be critical
  1. Man returns from Dubai to celebrate Eid with family in Rajouri, found dead
  2. Man returns from Dubai to celebrate Eid with family in Rajouri, found dead
  1. 17 dead in Venezuela club stampede
  2. 17 dead in Venezuela club stampede
  1. GoI decides not to extend ceasefire in Kashmir
  2. GoI decides not to extend ceasefire in Kashmir
  1. Youth critically injured in last evening Soura clashes
  2. Youth critically injured in last evening Soura clashes
  1. US pips India as top greenfield FDI investment destination: Report
  2. US pips India as top greenfield FDI investment destination: Report
  1. Egypt raises fuel prices by up to 66.6% to push reforms
  2. Egypt raises fuel prices by up to 66.6% to push reforms
  1. JRL condemns killing of two youth in south Kashmir in past 24 hours
  2. JRL condemns killing of two youth in south Kashmir in past 24 hours
  1. Eid-ul-Fitr celebrated with religious fervour, gaiety across Jammu
  2. Eid-ul-Fitr celebrated with religious fervour, gaiety across Jammu
  1. Devender Rana exchanges greetings at Eidgahs, meets people
  2. Devender Rana exchanges greetings at Eidgahs, meets people
  1. Eid-ul-Fitr celebrated with religious fervor across Ramban
  2. Eid-ul-Fitr celebrated with religious fervor across Ramban
  1. Governor views arrangements for Mela Kheer Bhawani
  2. Governor views arrangements for Mela Kheer Bhawani
  1. Member Parliament Karan Singh meets Jammu and Kashmir Governor
  2. Member Parliament Karan Singh meets Jammu and Kashmir Governor
  1. Mushtaq ul Hassan, Abdul Aziz Lone of Tangmarg bereaved
  2. Mushtaq ul Hassan, Abdul Aziz Lone of Tangmarg bereaved
  1. Two persons shot at in Shopian, hospitalised
  2. Two persons shot at in Shopian, hospitalised
  1. Three women killed, five minors injured in Kishtwar landslide
  2. Three women killed, five minors injured in Kishtwar landslide
  1. CM Mehbooba visits Kreeri, offers condolences to Shujaat Bukhari’s family
  2. CM Mehbooba visits Kreeri, offers condolences to Shujaat Bukhari’s family
  1. Eid celebrated with religious fervor in Kashmir
  2. Eid celebrated with religious fervor in Kashmir
  1. Man killed, four injured after vehicle hired by locals for sightseeing turns turtle in Lolab
  2. Man killed, four injured after vehicle hired by locals for sightseeing turns turtle in Lolab
  1. Mehbooba Mufti offers Eid prayers at Sonwar, prays for peace
  2. Mehbooba Mufti offers Eid prayers at Sonwar, prays for peace
  1. Soldier killed in cross-LoC sniper fire in Rajouri
  2. Soldier killed in cross-LoC sniper fire in Rajouri
  1. Trooper injured after militants attack CRPF party in Srinagar
  2. Trooper injured after militants attack CRPF party in Srinagar
  1. Police refute news reports, claim Anantnag youth died in grenade explosion
  2. Police refute news reports, claim Anantnag youth died in grenade explosion
  1. Nine youth with pellet injuries to eyes brought to SMHS hospital from Anantnag
  2. Nine youth with pellet injuries to eyes brought to SMHS hospital from Anantnag
  1. SSA teachers call off protest after meeting CM Mehbooba Mufti
  2. SSA teachers call off protest after meeting CM Mehbooba Mufti
  1. Seven youth injured in Shopian clashes
  2. Seven youth injured in Shopian clashes
  1. Youth killed, 10 cops among 22 injured in Anantnag clashes
  2. Youth killed, 10 cops among 22 injured in Anantnag clashes
  1. Geelani barred from offering Eid prayers: Spokesman
  2. Geelani barred from offering Eid prayers: Spokesman
  1. SSA teachers stage sit-in at Pratap Park on Eid day to press for demands
  2. SSA teachers stage sit-in at Pratap Park on Eid day to press for demands
x
This site uses cookies to deliver our services and to show you relevant news and ads. By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Service.That's Fine