Sensex below 29,100; Bank Nifty falls over 400 points

Axis Bank, ICICI Bank, HDFC Bank and SBI are down 1-3%. Bank Nifty has slumped over 2% at 19,334 down 414 points

Benchmark indices have extended losses and are trading near day’s low weighed down by financials and IT shares. Further weakness among global markets has also dampened the sentiments among local investors.

By 10:25, the Sensex was lower by 405 points at 29,044 and the Nifty slipped 126 points at 8,812.

Among broader markets, BSE Midcap and Smallcap indices are down nearly 1%. Market breadth is weak with 1,211 declines against 649 advances.

Technical analysts suggest that the Nifty now needs to hold the 8,950 levels to move towards 9,020 and 9,050 levels. "On the downside, immediate support exists at 8,900 levels for the Nifty and below that momentum may fizzle out and bears may drag the index towards 8,840 then 8,800 levels," points out a morning from Anand Rathi Research.

Investors would keenly await data on industrial production for January and consumer price index for February scheduled to be announced on Thursday.

Besides, developments in the ongoing session of Parliament will be closely watched.

On the currency front, the rupee plummeted by 50 paise to 62.66 against the US dollar in early trade today as the American currency strengthened overseas.

GLOBAL MARKETS

Asian stocks buckled while the dollar held firm on Monday after strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought.

Stock markets across Asia, including Japan's Nikkei, Australia, Malaysia and Indonesia fell broadly, with MSCI's broadest index of Asia-Pacific shares outside Japan dropping 1.2%.

US non-farm payrolls (NFP) data on Friday showed the unemployment rate hit a 6-1/2-year low of 5.5% in February.

LEADERS & LAGGARDS

BSE Bankex and BSE IT index have slumped between 2- 2.1%. Sectors like Auto, Consumer Durables, Healthcare, Metal, Capital Goods, Realty and Power have declined between 1-1.7%.

Banking shares are witnessing profit booking after the recent run-up in stock prices. Axis Bank, ICICI Bank, HDFC Bank and SBI have dipped between 1-3%. Bank Nifty has slumped over 2% at 19,334 down 414 points.

TCS on Thursday said that the revenue in Q4 March 2015 is expected to be in-line with last year trend. Retail, manufacturing and Hi-Tech segments are recovering from muted Q3 December 2014, TCS said. TCS said there will be continued weakness in Diligenta, insurance, and energy businesses. Further, Religare has downgraded the stock to "hold" from "buy". TCS is down over 2%.

Other notable losers are GAIL, Sesa Sterlite, Hindalco, NTPC, Infosys and Tata Power.

Among other shares, Container Corporation of India is trading higher by 5% at Rs 1,562 on NSE in early morning deals after the Reserve Bank of India (RBI) has allowed foreign institutional investors (FIIs) to invest up to 34% of the paid-up capital in the company engaged in transport related services business.

Shares of Sun Pharma Research Company (SPARC) has zoomed 19% to Rs 562, extending its 15% rally past two trading days, after the company received approval from US Food and Drug Administration (USFDA) for antiepileptic drug.