Sensex Tumbles by 207 Points; SBI Biggest Loser

Mumbai
Sensex Tumbles by 207 Points; SBI Biggest Loser
outlookindia.com
-0001-11-30T00:00:00+0553
The BSE benchmark Sensex today nosedived by 207 points to close at 17,362.10 on intense selling across banking, realty and auto stocks, triggered by rating agency Moody's lower outlook on the banking system and SBI's rising level of bad loans.

The Bombay Stock Exchange (BSE) 30-share Sensex resumed higher and a witnessed a few alternate bouts of buying and selling in early trade. Soon, intense selling pressure emerged bringing down the barometer to 17,362.10 at close, a net loss of 207.43 points or 1.18 per cent.

The Nifty of the National Stock Exchange also fell by 68.30 points or 1.29 per cent to 5,221.05.

"Banking sector disturbed the overall sentiment for the day. SBI reporting higher than expected NPA and Moodys downgrade of Indian banking system to 'negative' from 'stable' were enough to create capitulation in stocks," Milan Bavishi, Head of Research at Inventure Growth and Securities said.

Moody's today downgraded the outlook of the Indian banking system to "negative" from "stable" which is affecting asset quality, capitalisation and profitability. A "negative" outlook is characterised by volatility and uncertainties.

Brokers said selling was intensified by rising level of NPAs by country's largest lender State Bank of India (SBI).

SBI posted a moderate 12.4 per cent growth in net profit for the September quarter at Rs 2,810.43 crore. The bank's gross non-performing assets (NPA), however, increased to 4.19 per cent of total assets from 3.38 per cent a year ago.

"We see pressure on asset quality and provided adequately for it. Looking at the stress, there is a possibility of the gross NPA to go up", SBI chief Pratip Chaudhuri said.

Amid worries of mounting bad loans, share prices of SBI tanked 6.70 per cent to end the day as the biggest Sensex loser.

Tata steel at 4.08 per cent, Maruti Suzuki at 3.82 per cent, Hindalco at 3.69 per cent and DLF at 3.59 per cent were the other biggest Sensex losers.

Bucking the trend, HUL rose by 2.85 per cent, followed by IT stocks Wipro at 2.14 per cent TCS at 1.77 per cent. Hero MotoCorp too gained 0.91 per cent

Among the sectoral indices. The BSE-Bankex fell by 2.62 per cent, BSE-Metal by 2.50 per cent and BSE-Realty by 2.48 per cent.

The total market breadth turned negative as 1,879 stocks closed in the red while 991 that finished in the green.

The total turnover was relatively higher at Rs 2,576.35 crore from yesterday's level of Rs 1,984.53 crore.

Meanwhile, Asian shares ended mixed on data over robust Chinese economy. Hong kong, China, South Korea and Japan rose in the range of 0.23-1.71 per cent. European shares declined after a strong initial start with key indices in France, Germany and UK being down in the range of 1- 2 per cent.
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