Sensex slides for 3rd straight session, ends 262 points down, Nifty50 settles at 7,221; banking stocks fall

The BSE Sensex and NSE Nifty fell for the third straight session and hit their fresh 52-week lows on Wednesday on rising concerns over a spike in bad loans of public sector banks amid global sell-off. Sensex closed 262 points down at 23,758.90, while Nifty settled 76.80 points down at 7221.40. Weakness in the Indian rupee against dollar too weighed on the market sentiment.

In the Nifty 50 pack, share price of Punjab National Bank slid the most — 9.12 per cent, followed by Tata Motors (down 7.07 per cent), Bank of Baroda (down 5.95 per cent), Cairn India (down 5.92 per cent) and State Bank of India (down 4.82 per cent). On the other hand, HCL Technologies, UltraTech Cement and BPCL gained 2.65 per cent, 1.87 per cent and 1.59 per cent, respectively.

Sectorwise, the BSE Realty index, BSE Bankex and BSE Healthcare index plummeted 3.46 per cent, 2.04 per cent and 1.55 per cent, respectively on Wednesday. Rest all other sectoral indices also ended in red.

In scrip specific development, state-run lenders Central Bank of India (down 12.37 per cent), Dena Bank (down 4.36 per cent) and Allahabad Bank (down 9.61 per cent) slipped lower on reporting massive losses on Tuesday, while Punjab National Bank continued its downfall as the growing pile of stressed loans took a toll on their health, raising concerns over the precarious state of the financial sector.

Indian tyre stocks rallied on market expectations that the government may impose minimum prices for tyre imports or announce an outright ban on inbound shipments. Shares of Apollo Tyres and Ceat gained 10.70 per cent and 4.68 per cent, respectively, on Wednesday.

Overall market breadth remained negative, as there were 653 shares on the gaining side against 1,995 shares on the losing side while 105 shares remain unchanged.

Asian peers ended in red on Wednesday, as the collapse of oil prices and fresh worries that a new banking crisis could erupt in a fragile global economy added to the risk-off mood. Shares fell across the region despite oil prices seeking some rebound from overnight losses on news that Iran is ready to talk with Saudi Arabia over the current conditions in international oil markets. Japanese shares hit a 15-month low as the dollar slid from the lower 115 yen range to the mid-114 yen zone on concerns over global market volatility and worries over financial institutions in Europe and the US. The markets in South Korea, Taiwan, China and Hong Kong remain closed for the Lunar New Year holiday.