Nifty drops over four-month low, down 40 points

The benchmark Nifty witnessed selling for third day, slumping another 39.70 points to over four month lows on continued sell-off in most of the counters led by banking and financials, psu banks, realty, energy, auto and pharma counters.
The index attempted to enter green for brief period on value buying, but the broadly the market remained under pressure amid FII dumping shares on taxation concerns, poor corporate results, rising crude and fundamentally government inability to enact reforms resulting bearish sentiment.
Further, falling rupee to 20-month low breaching 64- mark accelerated volatility in banking and financial counters, while it helped buying IT counters.

Elsewhere, Asian stocks ended lower taking cues from overnight losses in US stocks routed by sell-off in government bonds.
The Nifty hovered between a high 8,122.60 and low of 7,997.15 before closing at 8,057.30, showing a decline of 39.70 points, or 0.49 per cent, over the last close.
The index losses led by bank-Nifty dropping by 2.61 per cent, PSU-Banks by 2.58 per cent, Financial 2.41 per cent, realty 2.28 per cent, Energy 1.79 per cent, Auto 1.16 per cent and Pharma 1.44 per cent, followed by shares from MidCap and SmallCap companies which lessened over 2 per cent.

However, IT counters gained 1.79 per cent.

Major losers included Bank of Baroda, IDFC, Kotak Bank, Axis Bank, YesBank, ONGC, PNB, Maruti, BPCL and ICICI Bank.
While, TCS, HCL Tech, ACC, Bajaj-Auto and Coal India gained.
Turnover in the cash segment dropped to Rs 17,675.51 crore against Rs 20,653.93 crore yesterday. A total of 9,202.03 lakh shares changed hands in 81,76,568 trades. The total market capitalisation stood at Rs 9,537,225 crore.