Markets bleed as Sensex tanks nearly 900 pts, ends below 59k

Mumbai: Benchmark stock indices Sensex and Nifty declined for a third day on the trot to close at five-month low levels on Monday due to a massive sell-off in banking, finance and auto stocks triggered by fears of potential contagion from the biggest bank failure in the US since 2008.

Unabated flight of foreign capital and a weak domestic currency amid global rate hike fears added to the gloom, traders said.

Falling for the third straight session, the 30-share BSE Sensex plunged 897.28 points or 1.52 per cent to settle at 58,237.85, the lowest closing level in five months.

Only one Sensex stock ended higher while the rest 29 dropped.

The NSE Nifty tanked 258.60 points or 1.49 per cent to end at a five-month low of 17,154.30, with 45 of its scrips ending in the red.

Domestic equity investors’ wealth eroded by more than Rs 4.43 lakh crore on Monday as fears of a financial contagion triggered by one of the biggest bank failures in the US roiled market sentiments.

Reflecting the massive sell-off across sectors, the total market valuation of BSE-listed companies stood at Rs 2,58,56,295.60, leaving investors poorer by Rs 4,43,023.89 compared to the closing level on Friday.

IndusInd Bank was the biggest loser in the Sensex pack, shedding 7.46 per cent, followed by SBI, Tata Motors, M&M, Bajaj Finserv, Axis Bank and Infosys. In contrast, Tech Mahindra was the only winner.

Analysts said that uncertainty over several mid and small size banks have created nervousness among global investors about the health of the US banking sector.

In the broader market, the BSE smallcap gauge dipped 2.08 per cent and the midcap index declined 1.82 per cent.

All the sectoral indices closed in red. Bankex declined 2.24 per cent, Telecommunication slipped 2.08 per cent, auto dipped 2 per cent, realty (1.98 per cent), financial (1.93 per cent) and tech

(1.49 per cent).

In Asian markets, Shanghai, Hong Kong and Seoul ended in the green, while Tokyo settled lower. European equity markets were trading with significant losses in the afternoon trade.

Meanwhile, the rupee declined 17 paise to close at 82.23 against the US dollar on Monday.