Sensex drops 104 points; banks, power shares hit
Mumbai: The Sensex Monday fell by 104.40 points to 17,678.81 on selling in banks, capital goods, metal and power shares amid the logjam in Parliament entering its second week over the coal block allocation issue.
The BSE benchmark index, which had lost 67 points in the previous session, opened flat on weak Asian cues but kept on sliding down as selling activity in interest-rate sensitive counters as well IT stocks increased.
Besides weak expectations of any immediate reduction of lending rates by RBI, a lower opening in European markets added soured the sentiment further.
After dropping to a day's low of 17,662.21, the Sensex closed at 17,678.81 - down 104.40 points, or 0.59 percent over Friday's closing.
"While the concerns over the deficit rainfall may now be waning, the debate over the CAG report on coal continues to haunt the political scenario," said Milan Bavishi, Head - Research, Inventure Growth & Securities.
The Indian rupee, which was last trading weaker by 10 paise at around 55.60 a US dollar in spot market did not provide any relief to stock market.
A fall in key stocks on the 30-share index including State Bank of India (2.58 percent), ICICI Bank (2.12 percent), Infosys (1.42 percent), L&T (1.66 percent), Jindal Steel (5.16 percent) and BHEL (2.70 percent) kept the market in the negative zone throughout.
Losses would have been sharper if it was not for gains in Reliance, Bajaj Auto, M&M and Cipla, said traders.
The wide-based 50-stock National Stock Exchange index Nifty also declined by 36.45 points, or 0.68 percent to 5,350.25 with stocks of realty, banking and capital goods sector ending with losses.
The BSE-Realty sectoral index was the biggest loser as it ended 2.42 percent down with stocks of Unitech, Indiabulls Real Estate, DLF, HDIL and Prestige Estate losing substantially.