Sensex Down By Over 700 Points, Nifty Dives Below 11,300

After falling for two straight sessions in a row, the BSE Sensex rebounded over 250 points in opening trade on Tuesday, led by gains in bank stocks. Likewise, the NSE gauge Nifty rose about 70 points in opening deals.

However, it soon lost the gains crashing over 737 points to trade at 37,930 in a fag-end selling on Tuesday as investors weighed deepening woes in the financial sector. NSE Nifty too dived over 227 points to 11,247.90. 

Yes Bank shares crashed over 24 per cent on Tuesday, a fifth consecutive session of fall. Other major laggards were IndusInd Bank, SBI, Bharti Airtel, ONGC, Tata Steel and TCS. Compared with the Sensex movement, broader smallcap, midcap and largecap indices underperformed. Sectorally, telecom dropped 3.88 per cent, followed by realty 2.22 per cent, tech 2.02 per cent and IT 1.72 per cent.

On Monday, the Sensex fell 155.24 points or 0.40 per cent to 38,667.33, while the Nifty dropped 37.95 points or 0.33 per cent to close at 11,474.45.

READ | Rupee Rises 12 Paise To 70.75 Against USD In Early Trade

Investors were cautious in view of reports highlighting governance and structural issues in the financial services space, bringing the financial and banking stocks under immense pressure on Monday.

Meanwhile, the Indian rupee was trading about 10 paise higher at 70.77 against the American currency in morning deals. Foreign investors pulled out Rs 469.40 crore from Indian equity market on Monday, exchange data showed. Stocks in Asia were mostly higher in early trade on Tuesday. Markets in China and Hong Kong are closed for holidays.