Sensex cracks 157 pts as banks fall, BoJ disappoints

Markets kicked off new F&O series on a sour note today, with the BSE Sensex falling 157 points to 28,051.86 hit by profit-booking in banking stocks while global cues remained muted on Bank of Japan's smaller-than-expected stimulus plan.
However, on a weekly basis, the Sensex rose 248.62 points or 0.89 per cent and the NSE Nifty perked up 97.30 points or 1.13 per cent. Both the indexes are up for a fifth consecutive month.
On the day, country's largest private sector lender ICICI Bank plunged 3.40 per cent to Rs 262.85 ahead of its quarterly result. Many state-run and private sector banks, which have declared their earnings numbers for April-June period, witnessed rise in bad loans.

Infrastructure giant Larsen & Toubro, which reported a 46 per cent jump in net profit to Rs 610 crore for June quarter after the market closing, slipped 1.20 per cent to Rs 1,558.
"Volatility continues to plague stock markets as benchmark indices traded with spikes through the day. August derivatives series seem to have started on a tepid note," said Shreyash Devalkar, Fund Manager - Equities, BNP Paribas Mutual Fund.
The 30-share Sensex despite opening higher, stayed in the negative zone for the most part of the session and touched a low of 28,037.87. The gauge finally settled 156.76 points or 0.56 per cent down at 28,051.86.

The 50-share NSE Nifty ended 27.80 points or 0.32 per cent down at 8,638.50.

Both the indices had witnessed buying activity in the last two sessions on positive signals over the GST bill and improvement in corporate earnings.
However, broader markets outperformed the Sensex with the mid-cap and small-cap indices rising 0.70 per cent and 0.23 per cent, respectively.
Globally, trading sentiment was bearish as the BoJ disappointed by keeping interest rates and government bond buying unchanged, at a time when many analysts were expecting the central bank to be bold with economy boosting measures.
Despite this, the Nikkei 225 Average ended 0.56 per cent higher but other Asian indices in China, Hong Kong, Singapore, South Korea and Taiwan fell by up to 1.71 per cent.

Among BSE sectoral and industry indices, auto stocks rose
by 1.44 per cent, followed by capital goods 1.17 per cent and metal 1.07 per cent. Oil and gas rose 0.38 per cent, PSU 0.26 per cent, consumer durbales 0.26 per cent and banking 0.24 per cent.
In line with overall trends, broader markets too showed a firm trend as mid-cap and small indices gained by 0.49 per cent and 0.09 per cent, respectively.
Globally, Japan's Nikkei ended 2.30 per cent higher while Hong Kong's Hang Seng closed 0.38 per cent lower. China's Shanghai Composite shed 0.01 per cent.
European shares dropped in their early trade as analysts pondered the implications of a key speech by Federal Reserve Chief on interest rates. In Europe, Paris and Frankfurt markets were down up to 0.80 per cent. London market was shut for a bank holiday.