New Delhi: A weaker than expected GDP growth rate numbers for the first quarter of the financial year weighed on investor sentiments as domestic equity indices BSE Sensex and NSE Nifty cracked over 2 percent on Tuesday.
The BSE Sensex plunged 770 points to settle at 36,563 while NSE Nifty ended at 10,798, down 2.25 points or 2.04 percent. The Sensex had opened at 37,181.76, as against its Friday close of 37,332.79.
The Rupee weakened sharply to a mid-December low of 72.37 against the Dollar, versus its close of 71.41 on Friday.
The Indian economy expanded just 5 percent year-on-year in the three months ended June, official data showed on Friday, thus marking the slowest pace since March 2013. Banks were among the worst hit on the first day of September, with the Nifty PSU Bank index sliding 4.9 percent to its lowest close since May 2016.
Punjab National Bank, United Bank of India and Indian Bank sank 8.5 percent to 11.7 percent after the government announced a series of mergers involving 10 public sector banks.
Private-sector lender ICICI Bank Ltd fell 4.3 percent, its sharpest drop since mid-May, while index heavyweight Reliance Industries Ltd dropped 3.4 percent to a near four-week closing low.
(With agency inputs)