Sensex slides 735 pts amid weak global cues; bank stocks tumble

MUMBAI: Extending the losses to the fourth consecutive day, the Indian stock market's key indices, Sensex and Nifty, slumped by more than one per cent on Friday amid weak global cues after the US Federal Reserve signalled an aggressive increase in interest rate to control inflation.

The 30 stock S&P BSE Sensex was trading 713.7 points or 1.21 per cent down at 58,406.02 points at 12.32 pm against its previous day's close at 59,119.72 points.

Earlier, the Sensex started the day in the red at 59,005.18 points and slumped to a low of 58,345.91points in the intra-day.

This is the fourth consecutive day of losses in the markets. The Sensex had dipped by 337.06 points or 0.57 per cent on Thursday.

The broader Nifty 50 of the National Stock Exchange was trading 220.40 points or 1.25 per cent down at 17,409.40 points against its previous day's close at 17,629.80 points.

The Nifty had lost 88.55 points or 0.5 per cent on Thursday.

The stock markets have slumped across the world after the US Federal Reserve on 21 September announced 75 basis points increase in policy interest rate.

Banking stocks witnessed heavy selling pressure. HDFC Bank slumped 2.87 per cent to Rs 1443.05. The scrip had lost 2.18 per cent on Thursday.

All major banks including Axis Bank, IndusInd Bank, State Bank of India, Kotak Bank and ICICI Bank were trading with huge losses.

Power Grid Corporation crashed 5.36 per cent to Rs 208.25. The index heavyweight Reliance Industries Limited was trading 1.55 per cent down at Rs 2447.30.

Only five out of the 30 scrips that are part of the benchmark Sensex were trading in the positive.

Sun Pharma jumped 1.95 per cent to Rs 924.60. ITC jumped 0.99 per cent to Rs 348.50.

The share price of Tata Steel rallied while subsidiaries slumped by upto 9 per cent on Friday after the company's board approved the amalgamation of seven group companies.

On the BSE, Tata Steel share was trading at 1.30 per cent higher at Rs 105.

The scrip surged to a high of Rs 107.90 in the intra-day.

Out of the seven Tata Group companies that would get merged with Tata Steel, four are listed. All these four companies were trading with heavy loss. Tata Steel Long Products Limited slumped 8.73 per cent to Rs 683.50.

The scrip hit a low of Rs 679.65 in the intra-day. Mahindra & Mahindra Financial Services Limited crashed by more than 14 per cent on Friday a day after the Reserve Bank of India (RBI) barred it from using third-party recovery agents.

On the BSE, the share of Mahindra & Mahindra Financial Services Limited was trading 11.42 per cent down at Rs 198.20.

The scrip crashed to a low of Rs 192.05 in the intra-day against its previous day's close at Rs 223.75.

The Reserve Bank of India on Thursday announced that it has directed Mahindra & Mahindra Financial Services Ltd (MMFSL) to "immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, till further orders."

However, the said NBFC may continue to carry out recovery or repossession activities, through its own employees, the RBI said.