Loan waiver spectre dampens sentiment

Mumbai: The contagion effect of bad loan waiver cast its thick, long shadow on stocks on Monday as the market benchmark BSE Sensex gave up over 166 points to close at a two-week low of 31,096 and Nifty fell 52 points. Investors remained on the sidelines as they waited for key macroeconomic data -- IIP and inflation -- amid a fall in global peers. Capital goods, banking and consumer durables found themselves on a sticky wicket.

Banking stocks under pressure; Jewellery shares hog limelight

“Bad loans, averaging three quarters of PSU banks’ net worth, looked to be haunting the banking stocks as the bankers headed for a meeting with the finance minister,” said Anand James, Chief Market Strategist, Geojit Financial Services Ltd.