Sensex plunges over 700 points, Nifty tanks below 11,300 as bank shares take hit
Nifty Bank lost as much as 3.52 per cent while Yes Bank and SBI dropped over 23 and 8 per cent respectively.
Yes Bank in a statement on Monday said recent market rumours and reports appear to have generated a lot of speculation around the private sector lender.
Carmaker Maruti Suzuki, which launched S-Presso on Monday reported over 26 per cent dip in total sales in the domestic markets last month. Its sale has fallen for an eleventh straight month.
An official data showed the country's infrastructure output contracted 0.5 per cent in August. Its first fall after April 2015.
The government has announced a slew of measures to boost the economy after its economy grew at its slowest pace (5 per cent) in the June quarter in over six years. On September 27, it cut corporate income tax rate from 30 per cent to 22 per cent that led at a rally in the domestic stock markets.
Meanwhile, RBI's Monetary Policy Committee (MPC) on Tuesday began a three-day bi-monthly meeting. Analysts expect a 0.25 per cent rate cut on Friday. The central bank has so far cut interest rate by 110 points in the calendar year.
Posted By: James Kuanal