Sensex falls as Fed tapers QE3; banking stocks pounded

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Sensex falls as Fed tapers QE3; banking stocks pounded
The Sensex and the Nifty sank in trade as risk off trade was back to haunt emerging markets, after the US Federal Reserve tapered its QE3 programme by another $10 billion. Read more on QE3 here

The Sensex ended the day with losses of 149 points , while the Nifty fell 46 points in trade. Banking stocks were the hardest hit in trade with the Bank Nifty sliding almost 3 per cent in trade, to close at the lowest level since Oct 2013. Stocks from the sector suffered a double whammy from the Fed and the RBI.

Banking stocks that saw maximum declines were Bank of India, which slumped almost 10 per cent, while other significant losers in trade were Bank of Baroda, Axis Bank and ICICI Bank.

Bharti Airtel was among the few stocks from the Nifty that rallied in trade, after the company reported a sterling performance. Among the few other Nifty gainers were Gas Authority of India, Lupin and Hindustan Unilever. Tata Motors was the top gainer from the Nifty.

Mid cap stocks like Voltas and Crompton Greaves rallied more than 7 per cent, after both the companies reported results that were better than expected.

Heavyweight, ITC ended the day flat after falling heavily, towards the earlier part of the day. Shares in Siemens, which reported numbers during markets hours ended the day lower after the company results were way below expectations.

Meanwhile, markets in Asia ended the day lower led by sharp declines of 2.45 per cent in the Japanese Nikkei.

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