The Sensex fell again today as lenders such as ICICI Bank faltered on worries quarterly economic growth data at the end of the week would be weak. The markets traded in the blues throughout the session in the absence of any positive trigger, both in domestic as well global markets.
BSE Sensex ended at 17,678 down 0.6% while the NSE Nifty at 5,350, down 0.7%. All the sectoral indices barring Oil&Gas and FMCG were in the red which rose 0.3% and 0.2% respectively. Realty was the biggest decliner to end down 2.4%. Bankex, Capital Goods, Metals, Power, IT, Tech and PSU were the other notable losing indices.
PNB, Jindal, Steel, JP Associates, IDFC, Axis Bank, RInfra, Bank of Baroda, DLF, BHEL, SBI, ICICI Bank, Tata Motors, Sterlite Inds, Maruti Suzuki, TATA Power and L&T were the notable decliners on the Sensex and the Nifty.
M&M and Power Grid Corp were the only notable gainers on the Sensex and the Nifty.
The sentiments mainly got butchered in the noon session due to political deadlock over the comptroller and auditor general (CAG) reports. Selling got intensified in power and infra space after opposition party, besides hitting out at Prime Minister’s statement on coal controversy, sought cancellation of allocated coal block.
Rate sensitive sectors like, banking, realty and capital goods once again remained the top laggard as hopes of a rate cut by the central bank faded as inflation continues to remain way above its comfort zone of 5%. The sentiments also remained under pressure after the Reserve Bank of India (RBI) said that growth deceleration in Indian economy have been led primarily by a 46% dip in new investments in large projects.
Metal shares were down on concerns that demand would be lower on the back of weakening economic scenario in China after government data showed that profits of major industrial enterprises declined by 5.4% in July.
ICICI Bank fell 2 percent, while State Bank of India declined 2.6 percent.
Larsen & Toubro ( fell 2 percent on media reports that the president of its power business, Ravi Uppal, may join rival Cairn India.