Sensex tanks 876 points as private banks drag markets lower

The Sensex plunged 876 points and the Nifty slipped below 22,900 on Monday as weak private-bank earnings and high crude prices triggered heavy profit-booking.

Mumbai's trading floors saw heavy red on Monday as both benchmark indices ended sharply lower. The Sensex tumbled 876.37 points, or 1.17 per cent, to close at 73,852.90, while the Nifty 50 shed 257.20 points, or 1.11 per cent, to settle at 22,888.95. The fall snapped a two-day winning streak that had been built on the previous week's rally.

The damage was led by private banks and technology shares. Axis Bank slid over four per cent after its September-quarter profit fell just short of analyst expectations, and HDFC Bank also weighed on the indices following its results. The Nifty IT index dropped around one and a half per cent as LTIMindtree's quarterly profit missed forecasts. Elevated crude oil prices near $108 a barrel added to the caution on Dalal Street.

There was one bright corner: the Nifty PSU Bank index was the sole major sectoral index to finish in positive territory, rising over two per cent on strong quarterly earnings from public sector lenders. Punjab National Bank jumped nearly five per cent and Union Bank gained over five per cent after both reported better profit and asset quality. Investors wiped out about Rs 3.6 lakh crore in market value in a single session.