Sensex closes at two-month low of 33,774.66, down 236 points; metal, bank shares drag
The BSE Sensex on Monday cracked below the 34,000-mark by plunging over 236 points to end at a nearly two-month low of 33,774.66 on sustained selling in PSU, metal and banking counters amid the massive PNB fraud weighing on investors' sentiment
Mumbai: The BSE Sensex on Monday cracked below the 34,000-mark by plunging over 236 points to end at a nearly two-month low of 33,774.66 on sustained selling in PSU, metal and banking counters amid the massive PNB fraud weighing on investors' sentiment.
Moreover, renewed concerns that a rebound in global crude oil prices will have an adverse impact on fiscal deficit too kept participants cautious.
Shares of Punjab National Bank (PNB) fell about 8 percent, extending the decline for a fourth straight session, following the Rs 11,400-crore fraud at its Brady Road branch, Mumbai.
The stock has fallen nearly 31 percent in four straight sessions since the bank detected the fraud.
Last Wednesday, the PSU lender said it had detected a fraud in which diamond jewellery designer Nirav Modi allegedly acquired fraudulent letters of undertraking (LoUs) from one of its branches for overseas credit from other Indian lenders, and the matter is being probed by the CBI and the Enforcement Directorate, among other agencies.
The 30-share Sensex barometer, which had lost 286.71 points in the previous session on Friday, plunged by 236.10 points, or 0.69 percent, to end at 33,774.66 after touching a low of 33,554.37 intra-day.
This is the weakest closing since 21 December last year when it had closed at 33,756.20.
Also, the broader Nifty too declined by 73.90 points, or 0.71 percent, to end at 10,378.40. It stayed in the negative terrain through the session and a hit a low of 10,302.75.
Meanwhile, foreign portfolio investors (FPIs) continued selling on domestic bourses. On net basis, they sold shares worth Rs 1,065.99 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 1,127.78 crore on Friday, provisional data showed.
Globally, in the Asian region, Japan's Nikkei rose 1.33 percent, while markets in Hong Kong and China remained shut on Monday on account of a public holiday. European markets were higher in their early deals.
Equity benchmarks returned to winning ways on Thursday after two days of declines as investors snapped up financial, pharma and IT stocks amid firm Asian cues
MEA says Centre will continue 'all efforts' to bring fugitives back to India as Mehul Choksi case continues
MEA spokesperson Arindam Bagchi added that India has been seeking extradition of fugitives Vijay Mallya and Nirav Modi from the UK
At the closing bell, the Sensex was trading 174.29 points higher at 52,474.76, while the Nifty 50 closed at 15,799.35 after increasing 61.60 points