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Bank stocks drag Sensex down 661 points at close

Last updated on: July 14, 2020 17:07 IST

Shares of the HDFC duo led the fall in the indices, shedding up to 2.94 per cent. IndusInd Bank, Axis Bank, Maruti, Bajaj Finserv, PowerGrid and SBI were among the other major laggards.

Equity benchmark Sensex plunged 661 points on Tuesday, dragged by losses in financial stocks amid selloff in global markets.

After touching a low of 35,877.42, the 30-share BSE Sensex settled 660.63 points, or 1.80 per cent, lower at 36,033.06.

 

Likewise, the NSE Nifty fell 195.35 points, or 1.81 per cent, to 10,607.35.

Shares of the HDFC duo led the fall in the indices, shedding up to 2.94 per cent, after HDFC Bank said it has launched a probe into its auto lending practices following allegations against the conduct of a long-time executive who retired on March 31 this year.

IndusInd Bank, Axis Bank, Maruti, Bajaj Finserv, PowerGrid and SBI were among the other major laggards.

On the other hand, Titan, Bharti Airtel and Bajaj Auto closed with gains.

"Key indices corrected close to 2 per cent on weakness in financial and metal stocks.

“We witnessed profit booking in key auto stocks as their volume numbers are already known to the street for the first quarter," said S Ranganathan, head of research at LKP Securities.

According to traders, besides stock-specific actions, negative cues from global markets amid escalating US-China tension and rising COVID-19 cases dampened investor sentiment here.

Asserting that the "Chinese predatory world view" had no place in the 21st century, the US on Monday categorically rejected the territorial claims made by Beijing in South China Sea, stating that it has no legal grounds to unilaterally impose its will on the region.

On the coronavirus front, the number of cases around the world linked to the disease has crossed 1.30 crore.

In India, the number of infections spiked to 9.06 lakh, according to the health ministry.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul closed with significant losses.

Meanwhile, international oil benchmark Brent crude futures fell 0.73 per cent to $42.41 per barrel.

Photograph: PTI Photo

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