It finally ended 144.52 points or 0.42 per cent down at 34,155.95. "The higher provisioning will keep earnings muted, especially for public sector banks".
He suggests keeping a close watch on global markets for cues and limiting leveraged positions until some clarity emerges. Punjab National Bank tumbled 9.8% after saying it detected fraudulent and unauthorized transactions of $1.77 billion in one of its branches in Mumbai, and the matter has been referred to law enforcement agencies. The stock lost 22 percent and more than Rs 8,000 crore in market capitalisation in two consecutive sessions after clarification from the management.
Oil demand: Oil consumption in India rose 10.3 percent in January, its fourth straight monthly gain, powered by the improvement in road freight transport coupled with growing use of cars and scooters.
In most of the recent months, the broader indices had outperformed the gains of the benchmark and even in months when the Sensex fell sharply, these indices managed to restrict their fall. Nifty Bank lost 191 points from day's high to close 83 points higher.
The BSE consumer durables index was trading 104 points or 0.49 percent lower and was the sole loser among the 19 sectoral indices.
Nestle India rallied 4.5 percent on robust Q4 results.
Allahabad Bank dropped 2.4 percent as it posted Q3 net loss of Rs 1,264 crore. Among other Asian markets, Hong Kong's Hang Seng was up 0.73 percent and Singapore edged up 0.05 percent, while Japan's Nikkei fell 0.64 percent and China's Shanghai Composite index slipped 0.32 per cent.