Sensex falls over 300 points; L&T, ICICI Bank dip 2%

The Sensex is down by 341 points at 28,377 whereas the Nifty has slipped by 100 points at 8,561 levels

Benchmark indices have extended losses and are trading near day’s low with Sensex and Nifty slipping over 1% weighed down by metal, auto and financials shares.

By 10:15, the Sensex was lower by 341 points at 28,377 whereas the Nifty has slipped by 100 points at 8,561 levels.

The main losers on the Sensex are GAIL, Tata Power, Tata Steel, ICICI Bank, L&T and M&M.

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Updated at 9:25

Markets have started the session lower, after exit polls on Saturday said the Aam Aadmi Party (AAP) would form the government in Delhi.

Most exit polls have predicted a majority for the AAP with one of them giving it as high as 53 seats in the 70-member House.

By 9:25, the Sensex was lower by 216 points at 28,502 whereas the Nifty has slipped by 68 points at 8,593 levels.

Among broader markets, BSE Midcap and Smallcap indices are down 0.6-1.1%. Markets breadth in BSE is weak with 1,035 shares declining and 486 shares advancing.

On the macro economic front, the government will issue the gross domestic product (GDP) data for the financial year's third quarter (Q3, October-December) today.

The government will release index of industrial production (IIP) data for December 2014 on Thursday. On the same day, the government will release data for the annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India in January 2015.

Meanwhile, foreign portfolio investors sold shares worth a net Rs 96.45 crore on Friday, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 115.49 crore on Friday.

GLOBAL MARKETS

Asian shares wobbled on Monday after dismal Chinese trade data eclipsed a strong US jobs report, raising concerns about a deepening slowdown in the world's second-largest economy and sending the Australian dollar sliding.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.8% while US stock futures also shed 0.4%. Japan's Nikkei share average bucked the trend and rose 0.2% on the back of a weaker yen.

Data published on Sunday showed China's trade performance slumped in January, with exports falling 3.3% from year-ago levels while imports tumbled 19.9%, far worse than analysts had expected. The data highlighted deepening weakness in the Chinese economy.

US jobs data released on Friday showed a rebound in wages while nonfarm payrolls increased more than expected in January.

Shares in the US fell as the better-than-expected jobs report raised expectations the US Federal Reserve will hike interest rates by mid-year.

GAINERS & LOSERS

BSE Metal and Realty indices have plunged by almost 2% followed by counters like Auto, Banks, Consumer Durables, Capital Goods and Healthcare, all dipping by 1% each. Infact, all the sectoral indices are trading in negative zone.

GAIL has slipped by over 5%. GAIL (India)'s net profit fell 64.03% to Rs 604.08 crore on 6.66% decline in total income from operations (net) to Rs 14969.41 crore in Q3 December 2014 over Q3 December 2013.

Tata Steel has fallen over 3%. Tata Steel's consolidated net profit slumped 68.78% to Rs 157 crore on 8.44% decline in turnover to Rs 33633 crore in Q3 December 2014 over Q3 December 2013. Earnings before interest, taxes, depreciation and amortization (EBITDA) dropped 21.19% to Rs 3090 crore in Q3 December 2014 over Q3 December 2013.

Other notable losers are Tata Power, Sesa Sterlite, M&M, Cipla, HDFC and HDFC Bank.  

Prominent companies including Larsen & Tubro (L&T) and DLF will post their quarterly results later during the day. L&T has slipped by over 1%.

On the gaining side, ONGC has risen by over 1%. The disinvestment of 5% stake in state-run ONGC appears unlikely this fiscal as the liquidity situation in the market is under stress after recent mega share sales.