Financial stocks drags down broader market

Profit-booking in financial stocks in early trade today dragged down the broader market, with mortgage lender HDFC plunging by over 1 per cent on the BSE.

Shares of HDFC lost 1.48 per cent to touch a early low of Rs 748 on the Bombay Stock Exchange.

"Profit-booking by retail investors and the FIIs brought the banking stocks under pressure," CNI Research CMD Kishore P Ostwal said.

Significant weakness in the shares of HDFC dragged the benchmark Sensex down by 69.41 points to 20,406.32 in opening trade. However, the broader gauge later recovered and was trading 37 points higher at 20,512.33.

Another major loser in the Sensex pack was private sector lender ICICI Bank, which saw yesterday's gains erased as the scrip fell by 1.36 per cent to Rs 1,142 in morning trade on the BSE.

The counter had risen 3.05 per cent to hit a one-year high of Rs 1,169.75 in the previous trading session.

Shares of another major private player, HDFC Bank, also opened the day on a weak note, sliding by 0.77 per cent to Rs 2,474.35.

However, the country's largest lender, SBI, was trading in positive terrain, edging up by 0.35 per cent to Rs 3,267.95 on the BSE at the start of the trade.