Sensex Falls Over 200 Points below 29,000; Banks Weigh

The Sensex slipped below the key 29,000 level for the first time since January 21 as the BSE benchmark dropped over 200 points in the noon deals. The selloff was led by banking shares with the Bank Nifty falling nearly 1.5 per cent as compared to a 0.6 per cent drop in the broader Nifty. The Nifty traded close to 8,750 levels, down over 50 points.

 

Banking stocks fell consecutively for the second session amid asset quality concerns. December quarter earnings of public sector lender Bank of Baroda and private lender ICICI Bank showed a rise in non-performing and restructured loans.

 

Bank of Baroda fell as much as 4 per cent, while ICICI Bank traded 2.5 per cent lower. Most other lenders in the Nifty traded lower.

 

FMCG, metal, oil & gas and consumer durable stocks were also facing the heat of selling pressure.

 

From, the Nifty basket, Asian Paints was the top loser. The stock was trading weaker by 6 per cent at Rs 808.50. Bharti Airtel, HUL, Dr reddy's Labs, Coal India, ICICI Bank, Bajaj Auto, Ultratech Cement, ITC, HDFC Bank, IndusInd Bank, HDFC, Reliance Industries, Tata Steel and Tata Motors were also trading on a weak note.

 

The broader markets were however outperforming the Sensex. The BSE mid-cap and small-cap indices were up 0.5 and 0.8 per cent each respectively.

 

At 12.10 PM, the Sensex was down 209 points at 28,974 and the Nifty was down 51 points at 8,757.