Nifty breaks 7,200; Sensex slumps 400 points

the S&P BSE Sensex was down 390 points at 23,690 and the Nifty50 was down 105 points at 7,194- lowest level since May 30, 2014

Markets have extended losses and are trading near day's low following a downtrend in global stocks that fell on alarming concerns about the health of world banks.

Banking and financial shares are leading the decline in local equities after a horde of public sector banks reported losses in December quarter on account of rising non-performing assets.

At 1: 50 pm, the S&P BSE Sensex was down 390 points at 23,690 and the Nifty50 was down 105 points at 7,194- lowest level since May 30, 2014.

As many as 147 stocks from the S&P BSE500 index are currently trading below their May 15, 2014 level. Most of the public sector banks (PSBs), metals, infrastructure, realty and oil & gas stocks are currently quoting below their May 2014 level.

In the banking pack, Oriental Bank of Commerce, Bank of India, UCO Bank, Indian Overseas Bank, Dena Bank, Allahabad Bank, Syndicate Bank and Punjab National Bank from the PSBs are currently available at more than 50% below their May 2014 price.

The top losers from the Sensex pack are ICICI Bank, Lupin, Dr. Reddy’s, Tata Motors, and HDFC, all down between 2% and 5% each.

The top gainers on the Sensex are RIL, Sun Pharma, Infosys, L&T, and Coal India, down between 0.2% and1.5% each.

Among individual shares, Apollo Tyres has rallied 10% on the BSE after the company reported a better-than-expected 51% year on year (y-o-y) increase in consolidated net profit at Rs 279 crore for the third quarter ended December 31, 2015 (Q3FY16) on back of lower raw material and finance cost. The company had posted a consolidated net profit of Rs 184 crore in the same quarter last fiscal.

Shares of Prestige Estates has dropped over 7% on the Bombay Stock Exchange after the company reported 35% drop in standalone profit at Rs 65 crore in the quarter ended December 2015 compared to Rs 100 crore for the same quarter ended December 2014.

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(updated 11:15 am)

Benchmark indices continue to trade at their fresh 52-week lows, amid weak cues from Japan, with bank shares leading the decline.

At 11:12 am, the S&P BSE Sensex was down 240 points at 23,780 and the Nifty50 was down 79 points at 7,220. The BSE Sensex and Nifty50 have touched 52-week low of 23,744 and 7,214, respectively in intraday trades.

The broader markets are underperforming the benchmark indices- BSE Midcap and Smallcap indices are down over 1%.

The rupee depreciated 6 paise to 67.96 against the US dollar in early trade today at the Interbank Foreign Exchange market due to increased demand for the American unit from importers and banks amid a lower opening in the domestic equity market.

In the overseas markets, Asian stocks fell on Wednesday on growing concerns about the health of the world's banks, particularly in Europe, pushing investors into safer assets such as the yen, which stood near a 15-month high versus the dollar.

Japan's Nikkei which tumbled more than 5% Tuesday, suffered another bruising session and slid to a 16-month low.

Back home, sectors like banks, metal and realty are witnessing extreme selling pressure. Bank Nifty is trading around 52-week low of 14,600 mark.

Shares of public sector banks (PSBs) such as Punjab National Bank (PNB), Allahabad Bank, Central Bank of India (CBI) and Dena Bank have hit their respective 52-week lows after these banks reported a weak set of numbers for the quarter ended December 31, 2015 (Q3FY16).

Indian drug major Dr Reddy's Laboratories has reported a marginal 1% increase in consolidated net profit at Rs 579.2 crore for the quarter ended December, 2014 on the back of lower growth in revenues. Shares of Dr Reddy’s Labs has slumped over 3%.

Other prominent losers are Tata Motors, Adani Ports, ICICI Bank and Tata Steel.

Shares of Prestige Estates were down over 7% at Rs 158 on the Bombay Stock Exchange after the company reported 35% drop in standalone profit at Rs 65 crore in the quarter ended December 2015 compared to Rs 100 crore for the same quarter ended December 2014.


With Reuters input