Sensex extends losses, Nifty slips below 9,300 as banking stocks decline

The benchmark indices extended losses in the noon deals as banking stocks dipped after the government notified the Banking Regulation (Amendment) Ordinance, 2017, while a drop in crude prices dragged down oil explorers such as ONGC and Oil India.

At 01:54 pm, the S&P BSE Sensex was ruling at 29,881, down 245 points, while the broader Nifty50 was trading at 9,289, down 70 points. The Nifty50 index reversed course seconds after hitting its fresh all-time of 9,367 in early trade.  

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices shed 1% each.

The breadth, indicating the overall health of the market, was significantly weak. On the BSE, 2,015 shares declined and 686 shares rose. A total of 138 shares were unchanged.

Tata Motors was the top Sensex loser and declined 4% after the company's British luxury car unit Jaguar Land Rover (JLR) reported a 2.3% fall in retail sales at 40,385 units in April 2017 over April 2016. 

Banking stocks dipped with Nifty PSU Bank index falling nearly 3% after the government notified the ordinance that seeks to tackle non-performing loans in the sector. 

Bank of Baroda, Syndicate Bank, Bank of India and Andhra Bank and IDBI slipped anywhere between 2-3%. 

Oil explorers fell on weaker crude oil prices, with ONGC and Oil India declining more than 2% each.

But oil refiners and airlines stocks rose with IOC climbing 2% while Spicejet was up over 8%.

Weak oil prices result in higher margins for domestic refiners and airline companies.

Globally, among Asian markets, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4% and was trading at its lowest level since April 25 as the fresh falls in commodities raised concerns about the health of the global economy.

(With inputs from Reuters)