ETMarkets After Hours: Banks fall after SFIO summons, media pack lone gainer

NEW DELHI: Bears came out of nowhere and wrought havoc during the last lap of today's trade. The intensity of the selloff can be gauged from the fact that Rs 2 lakh crore investor wealth was gone in a jiffy.

The BSE Sensex's descent was alarming as it took a steady plunge from the day's high towards the close of the session. In the end, it turned out to be the fifth consecutive day of loss for the market.

The S&P BSE Sensex crashed 430 points, or 1.27 per cent, to shut shop at 33,317.20. The Nifty50 was down more than 1 per cent at 10,249, a fresh 2018 low. Investors were unnerved by media reports which suggested that probe agency SFIO has summoned bankers, including chiefs of ICICI Bank and Axis Bank, in a case relating to the Rs 5,000 crore loan extended to Mehul Choksi’s Gitanjali Gems.


Of the 50 Nifty constituents, only 9 components managed to survive the heat wave as 41 settled in the red zone.

Here's what you should know about the Terrible Tuesday.

Financials in hot water
The market was weighed down by the Nifty PSU Bank index, which led the side. It plunged 87 points, or nearly 3 per cent, to close the session at 2,936.35, with all the 12 constituents ending lower. The Nifty Bank index fell 370 points, or 1.49 per cent, to finish at 24,448.45. Out of the 12 scrips, 11 lost. Canara Bank (down 5 per cent), Punjab National Bank (3 per cent) and Bank of Baroda (3 per cent) were the top losers in the pack. The Nifty Private Bank index shed 190 points, or 1.36 per cent, to close at 13,857.

Moody's upgrades JSW Steel
Credit rating agency Moody's today upgraded JSW Steel to Ba2 against Ba3 earlier with a stable outlook. The stock settled flat with a positive bias at Rs 293.35, up 0.58 per cent, on the NSE.

The lone gainer
Media stocks were the only lot that weathered the storm and ended positive on the NSE. The Nifty Media index jumped 0.42 per cent to close the session at 3,245.75.

Bandhan Bank IPO gets green light
Private lender Bandhan Bank has received market regulator Sebi's go-ahead to raise an estimated over Rs 2,500 crore through an initial share sale. According to the draft papers, Bandhan Bank's IPO comprises fresh issue of up to 9,76,63,910 shares and an offer for sale of up to 1,40,50,780 scrips by International Finance Corporation (IFC) and up to 75,65,804 shares by IFC FIG Investment Company.

Purvankara climbs 10%
Shares of real estate developer Purvankara climbed 10 per cent in the intraday trade ahead of its board meeting, scheduled later in the day. The stock eventually closed 3 per cent higher at Rs 141.30 on the BSE.

Govt may get a $1.5 bn dividend boost
The central government expects to get $1.5 billion as interim dividend from the Reserve Bank of India (RBI) this month, Bloomberg reported citing sources. The amount has been calculated for the six months through December 31, the people said asking not to be named as the information is private. RBI's financial year runs from July to June.

Quote of the day
"Fundamentals need to certainly catch up with the valuations. So, my hope is corporate earnings and GDP growth over the next few quarters will improve and catch up with the valuations," said Vikram Limaye, MD and CEO, NSE.

Spurt in open interest
Torrent Pharma saw the biggest jump in open interest at 21.57 per cent. United Spirits (16.95 per cent) and Indian Bank (15.32 per cent) came in next.