Sensex Plunges 700 Points, SBI Slumps 2.7% on Weak Q2 Result

Share market in India fell more than 2.4% in today’s trading session tracking losses in global markets as US bond yields surged on expectations that newly elected US President Donald Trump's policies would stoke inflation. At the closing bell, the BSE Sensex stood lower by 699 points, while the NSE Nifty finished down by 229 points. Meanwhile, the S&P BSE Mid Cap & the S&P BSE Small Cap finished down by 3.6% and 3.4% respectively. Losses were largely seen in auto, consumer durables and realty stocks.

The Nifty IT index fell 2%, its biggest weekly fall since mid-February, on worries about what Trump’s election would mean for the export-dependent sector.

The rupee was trading at 67.03 against the US$ in the afternoon session. Oil prices were trading at US$ 44.39 at the time of writing.

According to an article in The Economic Times, Sugar production in India, the world's second largest producer after Brazil, is estimated to decline by 10.27% to 22.52 million tonnes in ongoing season, but stock availability will be sufficient to meet the domestic demand. The country's sugar production had declined to 25.1 million tonnes in the 2015-16 season (October-September) due to drought in major growing states. 

While the domestic sugar consumption is estimated at about 25.5 million tonnes, the stock position at the close of the 2016-17 season is likely to be at 4.73 million tonnes, which will be carried forward for the next season. 

Sugar stocks languished in red today with Rajshree Sugar and Triveni Engineering & Industries leading the losses. 

Moving on to bank stocks. SBI share price plunged 2.7% in the afternoon session after the bank posted reported a 34.6% slide in its second quarter net profit as provisions against bad loans doubled from last year.

Net NPAs were at 4.19% in the September quarter compared to 4.05% in the previous quarter and 2.14% in the same quarter last year.

 

Selling activity was seen across majority of the PSU banks with Indian Bank and Andhra Bank leading the losses.

 

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