Indian markets continued to drop for the second day on Wednesday. The Sensex witnessed a late sell off after media reports that the Central Bureau of Investigation (CBI) had questioned the top officials of LIC Housing and Central Bank Of India in connection with an alleged multi-crore fake home loans scandal.
At the close, the benchmark 30-share index, BSE Sensex declined 231.99 points or 1.18% at 19,459.85 with 25 components posting drop. Meanwhile, the broad based NSE Nifty fell by 69 points or 1.16% at 5,865.75 with 44 components posting drop.
The Central Bureau of Investigation (CBI) while addressing media said that it has arrested LIC Housing Finance CEO and GM of Central Bank of India. It has also arrested Delhi DGM of Punjab National Bank. Several other bank officials arrested on bribery charges, it said. It also made arrest of CMD of financial services provider for acting as mediator to arrange loans.
BSE Bankex and Realty index dropped nearly 3% each at close. Banking and realty stocks were hammered badly on fake home loans scandal. The stocks were LIC Housing Finance plummeted over 18% to settle at Rs 1,068.55, Central Bank of India plunged 8% to close at 197.90. Orbit Corporation (dropped 7%), D B Realty (down 16.23%), Canara Bank (dipped 7.23%), Indiabulls Finance (down 7%), Bank of India (declined 5.88%), HDIL (5.28%).
Sensex Movers
I C I C I Bank contributed fall of 45.28 points in the Sensex. It was followed by State Bank Of India (35.9 points), Housing Development Finance Corporation (29.11 points), H D F C Bank (28.72 points) and Larsen & Toubro (20.05 points).
However, Mahindra & Mahindra contributed rise of 13.71 points in the Sensex. It was followed by I T C (4.7 points), Bharti Airtel (4.18 points), Tata Steel (2.59 points) and Tata Motors (1.59 points).
Biggest gainers in the 30-share index were Mahindra & Mahindra (3.23%), Bharti Airtel (0.76%), Tata Steel (0.54%), I T C (0.41%), and Tata Motors (0.32%).
On the other hand, State Bank Of India (3.34%), D L F (3.00%), Bharat Heavy Electricals (2.74%), I C I C I Bank (2.73%), H D F C Bank (2.67%), and Housing Development Finance Corporation (2.52%) were the biggest losers in the Sensex.
Mid & Small-cap Space
The BSE Mid and small caps outperformed their larger counterparts declining-1.11% and -0.56% respectively.
The major losers in the BSE Midcap were A I A Engineering (2.59%), Ackruti City (2.1%), Allcargo Global Logistics (0.85%), Allahabad Bank (0.76%) and Aban Offshore (0.64%).
The major losers in the BSE Smallcap were A K Capital Services (2.26%), Aarti Industries (1.5%), Abhishek Industries (1.17%), A B G Infralogistics (0.61%) and INEOS ABS (India) (0.19%).
Sectors in Limelight
The Bankex index was at 13,477.92, down by 408.56 points or by 2.94%. The major losers were Canara Bank(7.23%), Bank Of India (5.88%), Bank Of Baroda (3.95%), H D F C Bank (2.67%) and Federal Bank (2.58%).
The Realty index was at 3,041.62, down by 90.08 points or by 2.88%. The major losers were D B Realty (16.23%), Indiabulls Real Estate (4.29%), D L F (3%), Ackruti City (2.1%) and Anant Raj Industries (1.86%).
The PSU index was at 9,403.92, down by 176.28 points or by 1.84%. The major losers were Bank Of India(5.88%), Bank Of Baroda (3.95%), Andhra Bank (0.76%), Allahabad Bank (0.76%) and Balmer Lawrie & Company (0.15%).
On the other hand, the FMCG index was at 3,621.61, up by 8.54 points or by 0.24%. The major gainers were Nestle India (2.64%), Dabur India (1.07%) and I T C (0.41%).
Market Breadth
Market breadth was negative with 1,299 advances against 1,718 declines.
Value and Volume Toppers
L I C Housing Finance topped the value chart on the BSE with a turnover of Rs. 3,087.46 million. It was followed by State Bank Of India (Rs. 2,612.52 million), Coal India (Rs. 1,136.97 million) and Orchid Chemicals & Pharmaceuticals (Rs. 961.92 million).
The volume chart was led by Karuturi Global with trades of over 20.31 million shares. It was followed by Cals Refineries (17.34 million), Power Grid Corporation Of India (7.09 million) and Alok Industries (5.98 million).
