Sensex dragged down by the bank stocks, Nifty falls below 11,600

BSE Sensex and NSE Nifty slewed over 0.75% on Thursday. Sensex fell under the mark of 38,000 while Nifty slumped to less than 11,600. The BSE Sensex and NSE Nifty closed at 38,897 and 11,596 points respectively. 

Apart from the stocks of media and financial service companies, the indices were on the bearish trend. The stocks of PSU banks slumped over 3% while the stocks of PSE, Auto, Metal and CPSE fell over 2.50%.

The stock price of Mindtree collapsed by 10.6% as the IT firm declared a tremendous 41% decline in its quarterly net profit. This development has prompted brokerage firms to reconsider their interest in the company. 

The shares of Yes Bank collapsed by a whopping 19.6% to record a 52 week low. The Yes Bank recently announced a staggering 91% drop in its net profit, which prompted broking firms such as JP Morgan to reduce their target price on the Yes Bank stock.

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Coming to the Foreign Exchange Market, the Indian Rupee started strongly and gained to touch 68.95% up against the US Dollar. The Indian Rupee was influenced by the weakened USD index, which fell by 0.14%.  

The Asian markets were hampered due to the trade tensions between the United States and China. The tension has the potential to impact corporate earnings. Hong Kong and Nikkei index faded by 0.50% and 1% respectively while the SGX Nifty was trading 15 points down. 

A global benchmark, the Brent crude, traded at 63.4 a barrel which is higher by 0.29%. The Brend Crude production was disturbed last week due to a major storm in the Gulf of Mexico. The storm caused the production process to halt.