Sensex, Nifty at two-month low; banks slump

Reuters Market Eye - The BSE Sensex and the Nifty fall around 1.2 percent each, marking their lowest intraday level since November 27 on risk-off mood in emerging markets.

Strains in emerging markets returned with a vengeance and the U.S. Federal Reserve further scaled back its stimulus, sending investors scurrying to safety in bonds and yen. The Bank Nifty fell as much as 2 percent to its lowest since October, heading towards a sixth consecutive losing session.

ICICI Bank slumps 2.9 percent, and HDFC Bank falls 2 percent.

Hero MotoCorp falls 1.9 percent on caution ahead of its quarterly earnings later in the day. The bikemaker's operating profit may lag consensus estimates, Thomson Reuters StarMine's SmartEstimates shows.

 

(Reporting by Abhishek Vishnoi)