Disappointing results from State Bank of India (SBI), amid global weakness, dragged the BSE Sensex to its lowest close in 21 months. The benchmark index posted its biggest single-day fall since August 24, 2015, slumping 807.07 points, or 3.40 per cent, to 22,951.83 at the close on Thursday. The broader Nifty fell 239.35 points, or 3.32 per cent, to close at 6,976.35.
Investor sentiment was affected after SBI reported a 62 per cent drop in its net profit to Rs.1,115 crore owing to an increase in bad loans. The lender saw fresh slippage of more than Rs. 20,000 crore, which took its gross non-performing assets to a staggering Rs.72,792 crore or 5.1 per cent of its total loans.
On BSE, more than 2,400 stocks declined as against 288 gainers. The rupee also weakened 0.45 against the dollar, the most in a month, to close the day at 68.30 amid foreign fund outflows.
Gold, meanwhile, climbed for a ninth straight session, adding Rs.735 per 10 gm. to Rs. 28,934 on the Multi Commodity Exchange of India. The yellow metal hit its highest level since May 21, 2014.
