Sensex loses 151 points; auto, bank stocks fall the most

Mumbai - A benchmark index for Indian equities markets closed 150.72 points down Thursday on selling by foreign funds, weak earnings and a sliding rupee amid negative global cues. Auto, realty and banking stocks were the worst losers.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened in the red at 17,271.77 points, closed at 17,151.19 points, down 0.87 percent or 150.72 points from its previous close at 17,301.91 points.

The Sensex touched a high of 17,271.77 points and low of 17,120.86 points in the intra-day.

The wide-based 50-scrip S&P CNX Nifty of the National Stock Exchange was down 0.97 percent or 50.75 points at 5,188.40 points.

Auto, realty and banking stocks came under heavy selling.

The BSE auto index closed down 2.43 percent and the banking index fell 1.74 percent. Hero MotoCorp plunged 7.69 percent or 172.65 points at Rs.2,072.35 on weak earnings.

Banking stocks slumped a day after the Reserve Bank of India (RBI) announced guidelines for implementation of the Basel III norms. As per the guidelines, from January 2013, banks would have to set a higher percentage of their capital aside to meet these norms. This would reduce the amount of money they can lend. It has a direct impact on bank’s profits.

ICICI Bank fell 2.74 percent at Rs.857.55. The country's largest lender State Bank of India was down 2.54 percent at Rs.2,085.20.

Other major Sensex losers included: Maruti Suzuki, down 3.06 percent Rs.1,291.40; Tata Steel, down three percent at Rs.448.30 and Coal India, down 2.41 percent at Rs.337.50 and DLF, down 2.37 percent at Rs.187.45.

Prominent gainers included Hindustan Unilever, up 2.02 percent at Rs.433.60; Wipro, up 1.93 percent at Rs.412.30; TCS, up one percent at Rs.1,280.35, BHEL, up 0.60 percent at Rs.225.20 and Infosys, up 0.53 percent at Rs.2,484.35.

Traders and analysts said the negative trend overseas, fuelled by weak economic data released by US and Eurozone, impacted the markets.