The Bombay Stock Exchange benchmark Sensex slipped 1.7% from its previous week’s 10,000 mark after a day of choppy trade on Monday, 22 December.
Markets slipped below 100 points only after midsession on weak cues from world markets. The Sensex had opened higher by 73 points but soon dipped to negative on selling in consumer durables and realty sectors.
The 30-share BSE index ended 171.56 points down at 9928.35, breaking two consecutive days of gains.
The broad-based 50-share National Stock Exchange index Nifty dropped by 1.24% or 38.20 to 3039.30.
Hopes of more rate cuts by the government this week in a second economic stimulus package bolstered public bank shares by 7.7% and the index was dragged by the oil and gas and private banking sector.
Leading the losers were ICICI Bank Ltd that lost Rs25.90 or 5.49% to Rs446.05, followed by Reliance low by Rs64.55 or 4.78% to Rs1,284.70.
There were others losers like Mahindra and Mahindra (4.55%, Rs306.60), Maruti Suzuki (3.79%, Rs528.70) and HDFC Bank Ltd (3.01%, Rs1,019.75).
Cement shares rose after the government lifted a ban on exports imposed in May. Gainers for the day were Tata Motors (4.91%, Rs188.10), DLF (2.73%, Rs315.75) and Ranbaxy Laboratories (2.05%, Rs221.80).
Meanwhile reports came in of Japan’s record fall in exports adding to their recession woes but not affecting much of the index as Nikkei closed 1.57% up but Hang Seng lost 3% in trading on Monday.