Sensex falls over 300 points; biggest daily fall since July

MUMBAI Thu Feb 21, 2013 5:43pm IST

1 of 5. A broker looks at a computer screen at a stock brokerage firm in Mumbai July 6, 2009.

Credit: Reuters/Arko Datta/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - The BSE Sensex posted its biggest fall since July 2012 as banking stocks such as ICICI Bank(ICBK.NS) fell a day after RBI data showed loan growth was still a concern and on weakness in global shares due to worries over Fed slowing its bond-buying programme.

This was largely a reflection of the fall in risk assets which fell after minutes of the Federal Reserve's last policy meeting cast doubts over how much longer the U.S. central bank would stick to its stimulus plan.

"The selling pressure is more global, than due to local factors. Some liquidation might continue after such high inflows," said Phani Sekhar, a fund manager at Angel Broking.

The government may peg its fiscal deficit target at 4.8 percent of GDP for the next fiscal year, but it needs to explain as to how the figure is arrived at, he said.

The Union Budget to be presented on February 28 will be keenly watched as a test of the government's commitment to fiscal responsibility, whether it has a credible plan for reducing the deficit and whether populist measures can be avoided before the general elections in 2014.

The BSE Sensex fell 1.62 percent, or 317.39 points, to end at 19,325.36, posting its biggest daily fall since July 23, 2012.

The index closed at its lowest level since December 24, 2012.

The 50-share Nifty fell 1.53 percent, or 90.80 points, to end at 5,852.25.

Banking shares were among the major losers after RBI data showed loan growth continued to remain a concern. ICICI Bank (ICBK.NS) fell 3.74 percent while State Bank of India ended 1.84 percent lower.

Banks' advances have grown 8.7 percent so far this fiscal year compared with 11.2 percent a year earlier, while deposit growth was 7.8 percent compared with 11.4 percent in the same period a year earlier.

Yes Bank (YESB.NS) fell 4.37 percent while Axis Bank (AXBK.NS) declined 2.4 percent.

Reliance Industries (RELI.NS) fell 1.8 percent after a 3.1 percent surge on Wednesday.

Weak sentiment led to sell-off in blue-chip metal shares such as Tata Steel (TISC.NS), which ended 4.05 percent lower, and Jindal Steel and Power (JNSP.NS) which declined 4.1 percent.

Cigarette maker ITC (ITC.NS) ended 1.13 percent lower on concerns over a hike in taxation in the upcoming budget, which might impact its volume, dealers said.

ABB (ABB.NS) fell 3.5 percent after the company reported a 74 percent fall in its October-December net profit at 167.7 million rupees.

Shriram Transport Finance Co Ltd (SRTR.NS) slumped 7.5 percent after U.S. private equity firm TPG Capital TPG.UL raised $305 million by selling about half of its stake in the company, at a discount to Wednesday's closing price.

Shares in Videocon Industries Ltd (VEDI.NS) gained 5.8 percent after the consumer electronics and oil company said it was in talks to sell its 10 percent stake in an oil and gas block off the coast of Mozambique and Tanzania.

(Editing by Subhranshu Sahu)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Public Health

REUTERS SHOWCASE

Airtel Profit Jumps

Airtel Profit Jumps

Bharti Q2 net profit more than doubles   Full Article 

Maruti Earnings

Maruti Earnings

Maruti Suzuki net profit up 29 percent, beats estimates.  Full Article 

ICICI Results

ICICI Results

ICICI Bank Q2 profit up 15 percent, beats estimates.  Full Article 

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Market at Record

Market at Record

Sensex, Nifty hit record highs; reforms outpace hawkish Fed.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

End Of QE

End Of QE

U.S. Fed ends bond buying, exhibits confidence in U.S. recovery.  Full Article 

Samsung Results

Samsung Results

Smartphone woes drag Samsung Elec Q3 profit to more than 3-year low.  Full Article 

Refining Margins

Refining Margins

BPCL aims to double refining margins with refinery expansion.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage