Markets at day's low as SBI shares slide

Negative cues from Asian markets also weigh on sentiments; All sectoral indices trade in red

Markets have hit fresh intra-day low, owing to selling pressure in SBI and Larsen & Toubro. Negative cues from Asian markets have added to the bearish sentiment this afternoon, taking the Sensex to a low of 19,686. The index is now down 367 points, or nearly 2% at 19,695. Nifty is down 119 points at 5,975.

State Bank of India (SBI), the largest commercial bank in the country, today said its net profit for the quarter ended March 31, 2013 fell by 18.5% from a year earlier to Rs 3,299 crore on account of higher provisions and decline in net interest income. SBI shares plunged nearly 7% as earnings were poorer than market expectations. Industry analysts were expecting the bank's fourth quarter net profit to decline by 9% year-on-year.

In Asia, Nikkei plunged 7.3%, its biggest one-day percentage drop in two years after weak Chinese factory data rattled investors, prompting them to take profits from a recent rally buoyed by massive Bank of Japan stimulus measures.

The Nikkei ended 1,143.28 points lower at 14,483.98, a two-week low. It was the 11th-largest point drop on record. The Osaka Securities Exchange briefly suspending trade in Nikkei futures in the afternoon due to steep declines.

BSE realty index was the top sectoral loser - down 5.6% at 1,897. Capital goods index shed 5.3%, weighed down by selling pressure in Larsen & Toubro. Power and PSU were also in red. Owing to SBI's fall, the BSE bankex slumped 2.8% at 14,453.

BHEL was down 4.8% at Rs 194 ahead of results today. It is likely to post 24% yoy decline in its net profit at Rs 2,575 crore and a 4% yoy decline in operational income to Rs 18,805 crore for 4QFY2013 as industrial slowdown continues to delay execution, says analyst at Angel Broking Research.

Bharti Airtel, Tata Power, Reliance and NTPC dropped 3-5% each.

Among other losers were Maruti Suzuki, Tata Steel and Bajaj Auto.

However, HDFC and ONGC are holding on to gains and are up around half a per cent each in trades at the moment.

BSE market breadth was extremely negative. Out of 2,329 stocks traded, 1,676 shares declined while 534 shares advanced.