Rate-sensitive stocks such as banks, auto and realty stocks came under heavy pressure in the morning trade on Tuesday, dragging the benchmark indices nearly a per cent lower. At 10:00 am, the S&P BSE Sensex was trading 286 points or 0.73 per cent lower at 38,782, while the broader Nifty50 index of the National Stock Exchange (NSE) was ruling 90 points or 0.76 per cent down at 11,665.
The Nifty Bank index slumped over 400 points or 1.35 per cent to trade 29,609 levels, with 8 constituents in the red and 4 in the green. YES Bank was the top loser on the index as the stock slipped 30 per cent after it reported a surprise loss of Rs 1,506 crore in March quarter.
Post the announcement of results, brokerages have cut their 12-month price target by as much as 40 per cent and scaled back their earnings growth forecasts by up to 45 per cent for FY20 and also FY21. Large stressed pool, aggressive accounting practices and weakness in the retail franchise are among the reasons cited by analysts for their bearish stance.
The stock saw its biggest intra-day fall since its listing in 2005, as per TV reports.
The Nifty PSU Bank index was trading 4 per cent down at 3,035.50 level. All the 12 cosntituents were in the red with Bank of Baroda (down 6 per cent) taking the hardest hit.
The Nifty Auto index was trading 2 per cent lower at 8,330, while the Nifty Realty index was ruling at 257, down 3 per cent with all the 12 constituents in the negative terrain. Two-wheeler manufacturer Hero MotoCorp was trading nearly 3 per cent lower at Rs 2,533 apiece on the NSE after it reported 24.5 per cent decline in its standalone net profit at Rs 730.32 crore for the fourth quarter ended March 31, 2019.