Markets witnessed a carnage as the Nifty broke its 10,700 crucial support zone. All-round selling pressure in scrips across sectors dragged the Nifty to fall sharply below 10,700. The downfall was led by ICICI Bank, Reliance Industries, and Infosys.
A Credit Suisse report said that India’s consumer goods industry could post its slowest pace of revenue growth in a decade and a half this financial year, which largely bothered investors.
Besides, the US central bank lowered interest rates as expected, but offered mixed signals on further easing. Further, the Bank of Japan, while keeping monetary policy steady on Thursday, signalled the chance of expanding stimulus as early as its next policy meeting in October due to risks threatening the economy.
The Sensex traded down 495 points or 1.35% and the Nifty was at 10,696, down 144 points.
All of the 11 sectoral indices on the NSE moved lower, with banking, metal and media gauges worst hit in percentage terms.
The Nifty Bank index slumped 490 points led by Yes Bank, RBL Bank, IndusInd Bank, ICICI Bank and IDFC First Bank. Also, Banking stocks fell ahead of weekly expiry in Bank Nifty F&O expiry.
Shares of Yes Bank tumbled 15% to Rs54.75 on the NSE with heavy volumes.