Sensex down 348 points; banks stocks lose

A benchmark index of Indian equities markets Monday closed 348 points, or nearly two percent, down in volatile trade on negative global cues and in anticipation of poor quarterly current account deficit figures later in the day.

Markets showed concern over a possible shutdown of the US Federal government services due to a political deadlock over so-called Obamacare plan in the budget and with Italy likely to face new elections.

Domestically, the market expected a widened current account deficit for the April-June quarter that might put more pressure on the rupee and invite a ratings cut by international agencies. 

The 30-scrip S&P Sensex of the Bombay Stock Exchange (BSE), which opened at 19,643.89 points, closed (provisionally) at 19,379.77 points, down 347.50 points or 1.76 percent from Friday's close at 19,727.27 points.

The Sensex saw a high of 19,651.31 points and a low of 19,320.73 points in the day's trade.  The wider 50-scrip S&P CNX Nifty of the National Stock Exchange (NSE) also gained mere 97.90 points or 1.68 percent at 5,735.30 points. Sector-wise, bank, capital goods, metal, automobile and oil and gas scrips tanked. However, information technology (IT) stocks gained.

The S&P BSE bank index plunged 320.07 points, capital goods index was down 231.96 points, followed by metal index which was lower by 209.44 points, automobile index was down 165.11 points and oil and gas index decreased by 145.78 points. Healthy buying was observed in IT index which rose 4.37 points.