Sensex drops most in a month

Benchmark index plummets over 37 1 points to slip below the 25,000-mark

Mumbai, March 28: Stocks dropped the most in a month as some investors pared bets on interest-rate sensitives like lenders and engineering companies before before the monetary policy next week and the end of the monthly derivatives series on Thursday.

State Bank of India (SBI) slid the most in six weeks, while ICICI Bank, the largest private lender by assets, dropped the most in three weeks. Sun Pharmaceutical Industries, the nation’s most valuable drugmaker, declined the the most this year. Tata Steel tumbled 5.2 %, the worst performer on the benchmark gauge.

The S&P BSE Sensex declined 1.5% at the close, the steepest loss since February 23, while a gauge of mid-cap stocks fell to a two-week low. The Sensex is set for its best month since October 2013, as finance minister Arun Jaitley’s pledge to further cut the fiscal gap stoked speculation of an interest- rate reduction and spurred capital inflows into local shares. The Reserve Bank of India is scheduled to review rates on April 5.

“Traders are booking profits on rate-sensitive sectors after a sharp rally rather than face the uncertainty of the rate decision next week,” Chakri Lokapriya, the Mumbai-based chief investment officer at TCG Advisory Services, which manages about $3 billion in assets worldwide, said by phone. “The market is showing bouts of weakness before the expiry this week.”

RBI Governor Raghuram Rajan has kept interest rates on hold since September and said last month that a prudent budget as well as contained inflation were pre-requisites for further easing. He also said that the economy showed signs of weaker momentum, “pulled down by slackening agricultural and industrial growth,” according to a February 2 statement. He reduced benchmark borrowing costs by 125 basis points in 2015.

The outlook for lower interest rates and an easing in global

Mumbai, March 28: Total investor wealth declined by over ` 1.24 lakh crore on Monday as the benchmark BSE Sensex plummeted by over 371 points because of profit booking in recent out-performers ahead of derivatives settlement on Thursday. Tracking the weakness, the market capitalisation of BSE-listed companies slumped by ` 1,24,967 crore to ` 93,04,375 crore at close on Monday. The index plunged by 371.16 points or 1.46% to end at 24,966.40, registering its biggest fall in five weeks. The gauge fell below the psychological 25,000-level to touch a low of 24,895.49 due to widespread profitbooking. “Markets started the week on a weak note. The weakness persisted during the day, ahead of the expiry on Thursday and followed a strong performance of the markets over the past four weeks,” said Dipen Shah, senior vice-president & head of Private Client Group Research, Kotak Securities. market turmoil has brought foreign investors back to Indian equities. Global funds have bought $2.6 billion of shares this month, set for the biggest monthly purchase since January 2015. The inflows helped fuel an 8.5% advance in the Sensex this month, which left the gauge trading at its highest valuation this year.

PTI

Markets were closed Thursday and Friday for public holidays.

SBI slid 4.2%to `188.30. ICICI Bank dropped 3.7% to ` 225.45. Sun Pharma tumbled 4.4% and Tata Steel slumped 5.7%. Housing Development Finance, the largest mortgage lender, dropped for a second day.

Bloomberg