Sensex falls over 200 points over hung house possibility in Karnataka

The benchamrk BSE Sensex on Wednesday fell over 200 points over a possibility of hung house in Karnataka. Besides, the Karnataka factor Surge in US bond yield and weakness in Indian rupee also dragged the indices.

At 9:43 AM, Sensex was down by 256.15 points to trade at 35,282.74 points while Nifty was in red at 10,716.90 points.

Punjab National Bank (PNB) nosedived more than 10 per cent in early trade as it reported the huge loss ever by an Indian lender due to the Rs 13,400 crore scam.

The second largest state-owned bank came up with a loss figure of Rs 13,416.91 crore, biggest quantum of loss suffered by any banking entity for a quarter in the country.

The loss, which contrasted with a profit of Rs 261.90 crore in the year-ago period, came close to the size of Nirav-Choksi scam whose size has been again pushed up to Rs 14,356.84 crore as disclosed by the bank in the notes to the accounts for the March quarter.

"Bank has created liability in the books in respect of LOUs/FLCs which are becoming due after March 31 amounting to Rs. 6,959.79 crore. Bank will make payments to the concerned banks on the due dates of LOUs/FLCs. After including outstanding amounts under other credit facilities to the above entities, the amount involved now works out to Rs 14,356.84 crore," the bank said in its notes to accounts.

Meanwhile, Asian stock markets dipped on Wednesday after Pyongyang abruptly called off talks with Seoul, throwing a U.S.-North Korean summit into doubt, while surging bond yields revived worries about faster US interest rate hikes that could curb global demand.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 per cent as Pyongyang's move appeared to mark a break in months of warming ties between North and South Korea and with Washington.

A cancellation of the June 12 summit in Singapore could see tensions on the Korean peninsula flare again even as investors worry about China-US trade tensions and the sustainability of global economic growth.

"This will weigh on the Korean reconstruction beneficiaries that have had a strong run on peace and even reunification hopes recently," JPMorgan analysts wrote in a note.

Bombay Stock Exchange - BSE

National Stock Exchange of India Ltd (NSE)