Sensex tanks 300 points, Nifty below 8,750; banks drag

Key benchmark indices extended fall and hit fresh intraday low in afternoon trade as European stocks declined in early trade there. At 13:26 IST, the barometer index, the S&P BSE Sensex was down 314.78 points or 1.1% at 28,353.44. The Nifty 50 index was currently down 94.05 points or 1.06% at 8,737.50. The Sensex and the Nifty, both, hit 1-1/2 week low in afternoon trade. Weakness in global stocks weighed on sentiment.

The Sensex dropped 323.69 points or 1.13% at the day's low of 28,344.53 in afternoon trade, its lowest level since 15 September 2016. The barometer index fell 37.30 points or 0.13% at the day's high of 28,630.92 at the onset of the trading session. The Nifty dropped 94.40 points or 1.07% at the day's low of 8,737.15 in afternoon trade, its lowest level since 15 September 2016. The index shed 22 points or 0.24% at the day's high of 8,809.55 at the onset of the trading session.

In overseas stock markets, European stocks were lower in early as investors trod cautiously ahead of an OPEC producers meeting in Algeria this week. Asian stocks dropped after losses on Wall Street on Friday, 23 September 2016, as investors' attention turned from central banks to American politics ahead of the first US presidential debate. Investors were also pessimistic over any breakthroughs in oil-production cuts when the Organization of the Petroleum Exporting Countries (OPEC) gathers for an informal meeting on Wednesday, 28 September 2016.

US stocks logged weekly gains but ended with solid losses on Friday, 23 September 2016. Investors awaited US presidential debate between Donald Trump and Hillary Clinton due later in the global day today, 26 September 2016. US presidential elections will be held on 8 November this year.

Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,516 shares fell and 1,016 shares rose. A total of 178 shares were unchanged. The BSE Mid-Cap index was currently down 0.46%. The BSE Small-Cap index was currently down 0.34%. The decline in both these indices was lower than the Sensex's decline in percentage terms.

Pharma shares saw mixed trend. Sun Pharmaceutical Industries (down 1.46%), Cadila Healthcare (down 0.03%), Cipla (down 0.43%), Glenmark Pharmaceuticals (down 1.32%), Aurobindo Pharma (down 0.26%) declined. Wockhardt (up 3.25%), Lupin (up 0.55%), Dr Reddy's Laboratories (up 0.44%), Alkem Laboratories (up 3.81%), GlaxoSmithKline Pharmaceuticals (up 0.31%) rose.

IT stocks declined. Infosys (down 0.67%), Wipro (down 0.31%), HCL Technologies (down 0.78%), Oracle Financial Services Software (down 0.02%), Tech Mahindra (down 0.46%), MindTree (down 1.08%), Hexaware Technologies (down 0.89%) and MphasiS (down 1.76%) fell. TCS rose 1.06%.

Dilip Buildcon rose 1.61% after the company said it has received orders from Ministry of Road Transport and Highway and National Highways Authority of India. The announcements were made after market hours on Friday, 23 September 2016. Dilip Buildcon (DBL) has received orders from Ministry of Road Transport and Highway (MORTH) and National Highways Authority of India (NHAI).

The project from MORTH involves rehabilitation and upgradation of Eeppurpalem – Ongole section from Km 195+000 to Km 254+500 of national highway (NH)-214A (New NH-216) to two lane with paved shoulder in the state of Andhra Pradesh under NHDP – IV on engineering, procurement and construction (EPC) basis at a project cost of Rs 350.01 crore having length of 57.874 Km and completion period of 24 months.

The Letter of Award from NHAI involves four laning with paved shoulders of NH-6 from Chichra to Kharagpur (Km 185.150 to Km 134.400) including rehabilitation of existing four lane road from Km 134.400 to Km 129.600 in the state of West Bengal under EPC mode with a project cost of 613.09 and completion period of 30 months.

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