Sensex drops over 150 points on weak Chinese markets, Axis Bank tumbles 6%

Pessimism across key Chinese stock indices weighed on Indian equity markets in early Wednesday trade, with benchmark Sensex dropping 150 points over yesterday's close while a massive correction engulfed the Axis Bank counter even as the private sector lender bettered analysts' estimates in the second quarter earnings.

 Sensex drops over 150 points on weak Chinese markets, Axis Bank tumbles 6%

Bombay Stock Exchange. Reuters

Overnight weakness in the US markets also kept local investors on the edge, a trend mostly visible in the last two to three sessions as the outcome of the two-day US Fed meet on rate setting would provide traders some visibility about the policy makers' thinking with regards to the impending rate hike talks.

After falling more than 200 points in the last two sessions in a largely sluggish trading session, the 30-share BSE S&P Sensex at 9.55 am was at 27,129.69, down 123.75 points or 0.4 percent. The broader 50-stock CNX Nifty was at 8,201.95, down 30.95 points or 0.4 percent.

Despite a nervous start, the breadth of the market exhibited a positive trend with 885 stocks advancing against 646 declines on BSE.

Other Asian gauges, especially key Chinese indices such as Hang Seng and Shanghai Composite index were down over 0.6 percent each, while Japan's Nikkei gained 0.6 percent in mid-day trades.

Locally, banking shares were the worst hit with Axis Bank topping the losers chart in the Sensex pack, tumbling six percent to Rs 490. On Tuesday, post market hours, the country's third largest private sector said its July-September quarter earnings matched analysts' expectations with profit rising 18.9 percent year-on-year to Rs 1,915.6 crore with stable asset quality. It was aided by other income, operating profit and lower provisions but impacted by higher tax cost. Net interest income, the difference between interest earned and interest expended, grew by 15.2 percent to Rs 4,062 crore compared to Rs 3,524.9 crore in same period driven by strong advances growth.

According to analysts poll conducted by CNBC-TV18, profit was estimated at Rs 1,912 crore and net interest income of Rs 4,069 crore for the quarter,

Similarly, shares of another private sector bank -- ICICI Bank, too, faced investors' heat, dropping nearly two percent to Rs 278.25.

Other laggards pulling down the markets include Lupin, ONGC, Coal India, Cipla, Infosys and BHEL, which were down around a percent each.

Despite a negative start, select frontline stocks managed to buck the trend. Shares of Bharti Airtel rose 1.1 percent to Rs 356.25, Gail gained 0.9 percent to Rs 323.40, HDFC Bank moved up 0.7 percent to Rs 1,118.05 and Tata Steel was up 0.6 percent at Rs 247.45.

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Updated Date: Oct 28, 2015 10:34:02 IST