Markets slump on SBI numbers, Asian cues also weigh

Markets slumped to the day's low, owing to selling pressure in SBI and Larsen & Toubro.

Negative cues from Asian markets have added to the bearish sentiment this afternoon, taking the Sensex to a low of 19,634.

The index finally ended at 19,674 -- down 388 points. Nifty is down 127 points ta 5,967.

State Bank of India (SBI), the largest commercial bank in the country, today said its net profit for the quarter ended March 31, 2013 fell by 18.5% from a year earlier to Rs 3,299 crore on account of higher provisions and decline in net interest income. SBI shares plunged nearly . . .% as earnings were poorer than market expectations.

Industry analysts were expecting the bank's fourth quarter net profit to decline by 9% year-on-year.

In Asia, Nikkei plunged 7.3%, its biggest one-day percentage drop in two years after weak Chinese factory data rattled investors, prompting them to take profits from a recent rally buoyed by massive Bank of Japan stimulus measures.

The Nikkei ended 1,143.28 points lower at 14,483.98, a two-week low. It was the 11th-largest point drop on record.

The Osaka Securities Exchange briefly suspending trade in Nikkei futures in the afternoon due to steep declines.

Meanwhile, the rupee fell below the key psychological level of 56 to the dollar on Thursday, its lowest level in over 8-1/2 months, as the dollar rallied on worries about a potentially early end to US monetary stimulus. The rupee fell as low as 55.72.

Broader markets

ended lower. BSE mid-cap index slipped 2% at 6,363. Small-cap index 2.2% at 5,974.

BSE realty index was the top sectoral loser - down 6% at 1,785. Capital goods index shed 5% at 9,436, weighed down by selling pressure in Larsen & Toubro.

Power and PSU were also in red. Owing to SBI's fall, the BSE bankex slumped 2.8% at 14,453.

Larsen & Toubro shed 6.4% at Rs 1,419.

The company has removed Rs 17,000 crore worth of projects from the order book; it also categorised works worth Rs 5,000-6,000 crore as 'slow moving'.

The capital goods major reported worse-than-expected 6.9% year-on-year decline in net profit at Rs 1,788 crore for the quarter ended March 31, 2013 (Q4) due to higher interest costs.

India's biggest engineering and construction firm had profit of Rs 1,920 crore in a year ago quarter.

BHEL was down 3.7% at Rs 196 after announcing its results today.

The state-owned engineering company's net profit fell by 6.04% to Rs 6614.73 crore for the year ended March 31, 2013 as compared to Rs 7039.96 crore for the year ended March 31, 2012.

Total Income increased by 0.61% to Rs 49546.36 crore for the year ended March 31, 2013 from Rs 49244.44 crore for the year ended March 31, 2012.

Jindal Steel shed 4% at Rs 291. Market heavyweight -Reliance dropped 4% at Rs 785. NTPC, Bharti Airtel, ICICI ank and Sterlite slipped 2-3% each.

However, HDFC and Sun Pharma managed to hold on to some gains and ended up half a per cent each.

BSE markets breadth was negative. Out of 2,446 stocks traded, 1,737 stocks declined while 592 shares advanced.