Amid weak China, Sensex tumbles over 300 pts early Mon; PSU bank shares buck trend

Tracking the steep fall in Chinese equity markets, key domestic share indices took a major plunge in early Monday trade with Sensex tumbling more than 300 points as investors cut their position in oil&gas, capital goods and realty shares.

The steep fall at the start of the trade comes after the benchmark Sensex witnessed a strong recovery on Friday, rising a whopping 518 points on short-covering.

At 10.20 am, the 30-share BSE S&P Sensex was at 27,830.52, down 236.79 or 0.8 percent from previous close, marginally recovering from the low of 27,739.13, down 328 points.

 Amid weak China, Sensex tumbles over 300 pts early Mon; PSU bank shares buck trend

PTI

The broader 50-share CNX Nifty was at 8,457.85, down 60.70 points, or 0.7 percent.

Market breadth exhibited weakness with 1,063 stocks declining against 913 advances on BSE.

Major Chinese stock indices such as Hang Seng fell nearly 1 percent to 23,754.99 while Shanghai Composite index eased 0.1 percent at 3,960.61 even as Japan's Nikkei gained 0.3 percent to 20.575.74 in early trades.

Among the laggards in the Sensex space, Cipla tumbled 3.6 percent to Rs 714 after recent gains, Hindalco eased nearly 3 percent to Rs 90.55, ONGC fell 2.8 percent to Rs 263.05, Vedanta lost 2.3 percent to Rs 104.70, Reliance Industries declined 1.5 percent to Rs 952.65, Infosys dipped 1.4 percent to Rs 1,132.05 and HDFC was also down 1.4 percent at Rs 1,281.50.

Others such as Tata Motors, GAIL, M&M, Bharti Airtel, Hindustan Unilever, BHEL and HeroMoto Corp, too, slipped into the red in early trade.

However, on the other hand, PSU banking major SBI jumped 2.5 percent to Rs 275.10, Tata Steel rose 1.2 percent to Rs 239.95 and Coal India was up 0.5 percent at Rs 378.90.

Even as the BSE Bankex fell marginally by 0.1 percent to 21,458.75, select PSU banking shares bucked the broad market weakness amid reports the government is soon likely to initiate the bank recapitalisation process to help public sector banks tide over the growing NPA menace and prop up loan growth.

As a result, shares of Bank of Baroda soared 11.7 percent to Rs 206.10, Canara Bank jumped 5.9 percent to Rs 323.55, Bank of India flared up 5.3 percent to Rs 179.20, PNB gained 3.8 percent to Rs 172.65 and Andhra Bank was up 2.8 percent at Rs 77.70.

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Updated Date: Aug 17, 2015 10:19:58 IST