Sensex, Nifty fail to sustain morning gains; Suzlon Energy, Dilip Buildcon, YES Bank stocks bleed

After opening on the higher note in the early morning trade session, the Indian indices finally succumb to the weekend selloff. The BSE Sensex lost 117 points after closing at 39,714 levels while the 50-stock Nifty lost 23 points and closed at 11,922 levels. The index Bank Nifty crashed 161 points and closed at 31,375 levels. Suzlon Energy, Dilip Buildcon, YES Bank stocks were in the bleeding zone as Infra, metal, power and banking stocks were among the major losing stocks in the intraday trade.

Speaking on the current market outlook Simi Bhaumik, a SEBI registered technical equity analyst told Zee Business Online, "Overall the market is bullish and the intraday loss is due to the weekend selloff. Since, the market has closed below 11,950, I would maintain that the market is still range-bound in 11,800-11,950 and stock market investors are advised to adopt buy on dips strategy."

Infra stock led the blood bath at Dalal Street as the BSE Infra index lost 1.32 per cent in the intraday trade. Infra major Dilip Buildcon lost 3.47 per cent, shares of Aban Offshore nosedived 2.29 per cent, NBCC (India) stocks went down 2.67 per cent, NTPC counter crashed 1.74 per cent, Tata Communications stocks dipped2.88 per cent while Tata Power went down over 2 per cent. But, Vodafone Idea stocks gained over 4 per cent, Reliance Communications share price jump over 4.5 per cent while shares of Gayatri Projects rose 4.39 per cent.

Power stocks also witnessed heavy selloff as the BSE Power index went down over 1 per cent today. Power major Suzlon Energy crashed 4.87 per cent, Adani Power shares went down 2.52 per cent, GMR Infrastructure shares dipped 3.43 per cent, NTPC share price went down around 1.75 per cent while Tata Power went down over 2 per cent.

Banking stocks had to face a shock as the sector was expecting the most-awaited banking reforms under Amit Shah. However, their hopes dashed as the BJP leader was given Home Affairs in the Modi 2.0 cabinet. Banking major Yes Bank crashed 4.27 per cent, Bank of Baroda and Kotak Mahindra Bank lost over1 per cent while Federal Bank, HDFC Bank, ICICI Bank and SBI all ended up in the red zone.

Among Asian markets Japanese Nikkei 225 index crashed 1.63 per cent, South Korean Kospi nudged 0.14 per cent higher, Hang Seng lost 0.79 per cent while the Shanghai index went down 0.3 per cent.