Last hour selloff drags Sensex 430 pts

Mumbai, Mar 6: The market fell sharply in last hour of trade on Tuesday as benchmark indices ended at fresh 2018 closing lows despite strong global cues, weighed by banks. All sectoral indices closed in the red.
Frontline indices extended losses for fifth consecutive session, especially after the ICICI Bank managing director and chief executive Chanda Kochhar and her Axis Bank counterpart Shikha Sharma have been summoned by the Serious Fraud Investigation Office (SFIO), in the Rs 12,700-crore PNB fraud case.
The 30-share BSE Sensex was down 429.58 points or 1.27 percent at 33,317.20 and took the total five-day loss to 1,128 points.
The 50-share NSE Nifty dropped 109.60 points or 1.06 percent to 10,249.30.
Similar trend was seen in midcaps as the Nifty Midcap index slipped 1.2 percent. About five shares declined for every share rising on the NSE.
“We expect the markets to remain volatile and choppy in the near term due to bank scams, volatile global markets, continued selling pressure from FIIs and fear of faster than anticipated interest rate hike in US,” Jayant Manglik, President, Religare Broking said.
He further said market participants will keep a close watch on macro data like IIP, WPI & CPI inflation.
“Investors should consider this ongoing correction as an opportunity to invest in fundamentally sound companies. Meanwhile, traders should remain cautious and keep their position hedged, as volatility is expected to remain high,” Manglik said while advising.
Global markets moved higher as concerns over a potential trade war faded. Japan’s Nikkei, China’s Shanghai Composite, Hong Kong’s Hang Seng, South Korea’s Kospi and Australia’s ASX 200 ended 1-2 percent higher.
European markets – France CAC, Germany DAX and Britain FTSE were trading lower by 0.6-1.1 percent as investors awaited for clarity from Italy’s election, at the time of writing this news.
Back home, 35 stocks out of Nifty50 ended in the red.
All the sectoral indices closed on a negative note with PSU Bank falling the most, down 2.9 percent. Nifty Bank, Auto, FMCG, IT and Pharma indices were down more than 1 percent.
ICICI Bank was down 2.7 percent and Axis Bank fell 1.4 percent after both banks’ Managing Directors have been summoned by SFIO, which indicated that investigation in PNB fraud case deepened further.
PNB was down 2 percent and Gitanjali Gems slipped 5 percent after the CBI yesterday said the violation of norms for issuance of Letters of Undertaking (LoUs) to benefit billionaire jeweller Nirav Modi and his uncle Mehul Choksi had been going on since 2010.
Sun Pharma lost 3 percent after the USFDA issued three observations to Halol plant in February.
HDFC Bank, Reliance Industries, TCS, TCS, State Bank of India, Maruti Suzuki, L&T, M&M and Kotak Mahindra Bank among others were down 1-3 percent. IndusInd Bank, BPCL, Zee Entertainment, UltraTech Cement and Aurobindo Pharma gained 1-2.5 percent.
In the broader space, Adani Enterprises, Adani Power, Reliance Communications, Reliance Power, Reliance Naval, Bank of India, Indian Bank, Syndicate Bank, Canara Bank, Union Bank, Dwarikesh Sugar, Balrampur Chini, Dhampur Sugar, DHFL, United Spirits, Radico Khaitan, Dish TV, BEML, Future Consumer, Jaiprakash Associates, SAIL and Wockhardt w0ere down 3-12 percent.