Bank Stocks Drag Markets as Sensex Loses More Than 350 Points

In intra-day trade, the BSE Sensex crashed as much as 737 points

Image used for representational purposes only.

(Photo: Reuters)

Equity markets finished with losses for the third straight session as Sensex and Nifty lost close to a percent each on Tuesday, 1 October.

The 30-share BSE Sensex lost 361.92 points to close at 38,305.41, while the broader 50-share NSE Nifty finished at 11,359.90, down 114.55 points.

Bank stocks remained under pressure in Tuesday’s trade as the Nifty PSU Bank sub-index slipped close to 4 percent.

In intra-day trade, the BSE index had crashed as much as 737 points as investors weighed deepening woes in the financial sector.

Analysts said a caution has prevailed among investors amid a deepening crisis at Punjab and Maharashtra Co-operative Bank (PMC) and fraud allegations against Indiabulls Housing Finance Ltd (IHFL).

The Mumbai Police on Monday filed a case against the former bank management and promoters of HDIL in the Punjab and Maharashtra Cooperative (PMC) Bank case and said a special investigation team will be probing the case.

Yes Bank shares crashed over 24 percent on Tuesday, a fifth consecutive session of fall. Other major laggards were IndusInd Bank, SBI, Bharti Airtel, ONGC, Tata Steel and TCS.