SBI, Tata Steel shares drag Sensex 163 points down

The Sensex, which had lost 56 points in the previous session, opened higher at 18,894.42 but failed to sustain the initial momentum to close 162.58 points, or 0.86 per cent, lower at 18,683.68.

On similar lines, the National Stock Exchange index Nifty fell by 52.50 points, or 0.91 per cent, to 5,686.25 led by stocks in realty, metal, oil & gas and banks.

Brokers said the market remained in bearish mode as State Bank of India reported an increased in bad loans and ONGC posted a steepest fall in quarterly profits in almost 4 years.

SBI shares plunged 3.89 per cent to Rs 2,156.35 and ONGC fell 3.05 per cent to Rs 257.10. Reliance Industries and Infosys also closed down one per cent each.

Tata Steel reported consolidated loss of Rs 363.90 crore for the July-September quarter, as against net profit of Rs 212.40 crore in the same quarter last fiscal. Its shares closed over 3.2 per cent down.

"What is worrying markets are the slippages and loan restructuring the banking sector could face in coming quarters... Tata steel disappointed with lower than expected numbers," said Nagji K Rita,CMD,Inventure Growth & Securities.

In the 30-share Sensex, 28 stocks closed with losses while Cipla and Maruti Suzuki ended with gains. Realty sector index suffered the most among sectors as investors judged the recent gains as excessive.

A similar weak trend in Asia and Europe further influenced the domestic market sentiment, traders added.