Sensex plunges 650 pts on weak global cues, Budget (Lead)

Mumbai, July 8 (IANS) Sensex and Nifty extended their fall on Monday as weak global cues added to the poor investor sentiment on Friday’s Budget proposals.

A sell-off in the global markets was triggered as US reported strong job data, which faded hopes of an aggressive rate cut by the Federal Reserve.

Besides, Punjab National Bank’s (PNB) admission on Saturday that it had been defrauded of Rs 3,805.15 crore by Bhushan Power & Steel Ltd (BPSL) dragged the PSU Bank index causing it to fall over 5 per cent.

During the afternoon trade, PNB was down 10.57 per cent or Rs 8.65 apiece to Rs 73.15.

Heavy selling was seen in PSU banks such as Bank of India, Union Bank of India and Canara Bank, which were trading over 7 to 10 per cent lower. Allahabad Bank, Syndicate Bank and Bank of Baroda declined in the range of 4 to 5 per cent.

At 1.27 p.m., the Sensex was trading 652.69 points or 1.65 per cent lower at 38,860.70. The benchmark index opened at 38,879.29, lower from its Friday’s close of 39,513.39.

The broader Nifty slipped to 11,601.05, lower by 210.10 or 1.78 per cent.