Banking shares drags markets down - Stock Market Pulse

Banking shares drags markets down; China PMI, US Federal plays spoil sport

Markets snapping its four day winning streak closed weak near days low. Banking shares and Metal sectors were the major in dragging the benchmark indices. US Federal Reserve’s last meeting caused the turmoil. Adding to the turmoil was China PMI (Purchasing Managers Index) which fell to 48 percent seven month low. The BSE Sensex slipped by 186 points or 0.9 percent at 20,536. It opened weak down nearly 62 points at 20661. The CNX Nifty also declined by 61 points or 1 percent at 6091. It opened down by 25 points at 6127.

Weakness in the sectoral market was seen. Bankex index dropped 1.63 percent and Metal indices slipped over 1 percent. FMCG and Oil & Gas indices fell by 0.9-0.8 percent. IT, Realty, Auto and Consumer Durables were the other indices closing weak. While Healthcare index closed almost flat with negative bias.

Power and Capital were the only sectoral indices posting marginal gains closing between 0.3-0.1 percent. Even the weakness was seen in broader markets. However the broader markets closed mixed. Mid-Cap index ended flat and Small-Cap index slipped marginally by 0.16 percent.

Among the Sensex gainers Dr Reddys Lab dropped by 1.82 percent. Bajaj Auto and Tata Power slipped nearly 1 percent each. BHEL, L&T and Wipro were the only other index gainers closing marginally positive.

Among the Sensex losers, banking shares were the main draggers. It includes ICICI Bank dropping over 2 percent. HDFC and HDFC Bank fells between 2-1 percent. Axis Bank slipping by 0.7 percent. Bharti Airtel slipped nearly 2 percent. SBI and Tata Steel also slipped 1.80 percent each. Hindalco, ITC, Coal India, Gail (India), Mahindra & Mahindra and Infosys fell down between 2-1 percent. Hero MotoCorp and Maruti Suzuki fell nearly 1 percent each. Reliance Industires, ONGC, Hindustan Unilever, Sun Pharma, Cipla, Sesa Sterlite, NTPC, TCS and Tata Motors were among the other index decliners.

The overall market breadth was firm negative. Of 2820 shares traded 1492 shares declined and 1180 shares advanced. While 148 shares remained unchanged.

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Banking shares drags markets down
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