Markets hit one-month low; Nifty dips below 9,500; PSU banks lead decline

The market hit one-month low on Tuesday with the S&P BSE Sensex slipping below its crucial 31,000 level, while the broader Nifty50 dipped below its key support of 9,500 level. 

The losses came after public sector banks took a hit following a report that the Reserve Bank of India (RBI) has demanded higher provisioning for loans submitted under the insolvency process.

At 1:42 pm, the 30-share Sensex was trading at 30,921, down 217 points, while the Nifty50 was ruling at 9,498, down 77 points. 

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices underperformed to lose 0.8% and 1%, respectively. 

The breadth, indicating the overall health of the market, was weak. On the BSE, 1,658 shares declined and 709 shares rose. A total of 114 shares were unchanged.

Nifty PSU Bank was down over 3%, led by losses in Syndicate Bank, Punjab National Bank, Andhra Bank and Bank of Baroda, which dipped in the range of 3-4%. 

Canara Bank, SBI and Allahabad Bank also dropped 3% each following news report that the RBI has asked banks to set aside at least 50% of the loan amount for accounts referred to bankruptcy courts. The move could hurt banks' earnings to the tune of 500 billion rupees, the report said. CLICK HERE FOR THE FULL REPORT 

Shares of Tejas Networks made a quiet debut on the bourses by listing at its initial public offer (IPO) price of Rs 257 on the National Stock Exchange (NSE) and BSE. The stock hit a high of Rs 264 in intra-day trade on the NSE. On BSE, it hit a high of Rs 266.

Among gainers, Aurobindo Pharma climbed as much as 3% to its highest since March 24 after Jefferies analysts raised price target on the stock to Rs 780 from Rs 750 and maintained their "buy" rating on the stock.

Shares of Jaypee Group companies such as Jaiprakash Associates, Jaypee Infratech and Jaiprakash Power Ventures rallied up to 20% in an otherwise subdued market.

Jaypee Infratech was locked in upper circuit of 20% at Rs 14.94 on the BSE on back of three-fold jump in trading volumes. Jaiprakash Associates too surged 20% to Rs 22.53, also its fresh 52-week high on the BSE in intra-day trade. The stock gained 22% in the last two days after lenders cleared the company’s debt recast plan.

Overseas, European markets opened lower. The Stoxx Europe 600 was off 0.3% in the early minutes of trading, weighed down by a drop in the auto companies.