Sensex Sinks 588 Points; Nifty Drops To 13634; Banking Stocks Lend Support

Benchmark indices swung between gains and losses as the FM tabled Economic Survey 2020-21 in the Lok Sabha. At the close, Sensex shed 588 points to close at 46285 while Nifty was dragged to 13634, losing 1.32 percent or 182 points.

Sensex Sinks 588 Points; Nifty Drops To 13634; Banking Stocks Lend Support

Top gainers on the Nifty in trade today have been IndusInd Bank, Sun Pharma, ICICI Bank, HDFC Bank and HDFC Life, while losers include Dr. Reddy's Labs, Maruti Suzuki, Tata Steel, Hero Motocorp and Wipro among others.

For FY21, Economy Survey estimated the economy to contract by 7.7% and sees FY22 real GDP growth at 11 percent. Further the Survey pointed that manufacturing, construction, contact-based services were the worst hit.

After the Economic Survey 2021 advocated adequate capitalization of PSBs, the sector witnessed remarkable gains. If capital is not provided, lenders may resort to risk-shifting, said the survey, which shall have a bearing on the real economic recovery. Towards the end of the session, Nifty PSU Bank was up by over 1 percent, led by gains in Union Bank, Bank of Baroda, PNB and Canara Bank among others.

Ahead of its results, ICICI Bank ended as analysts expects its net profit to take a hit.
Sun Pharma shares after the pharma company's Q3 profit doubled to Rs 1,852.5 crore (YoY). Revenue also inched higher by 8.4 percent at Rs 8,837 crore against Rs 8,155 crore (YoY). Board announced interim dividend of Rs 5.50 per share.

Meanwhile, European indices traded with losses at the time of writing this copy with cut of up to 1.33 percent on French CAC.

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