The BSE benchmark Sensex today fellby 143 points on heavy selling in private banks, includingICICI Bank and HDFC Bank, following government's promise thataction will be taken against the guilty in alleged moneylaundering scam.
After a better start at 19,673.16, the Sensex fell by142.88 points, or 0.73 per cent to settle at 19,427.56. Thegauge had gained 208 points in the previous session after athree-day string of losses.
The broad-based National Stock Exchange index Nifty fellby 36.35 points, or 0.62 per cent to end at 5,872.60, aftertouching the day's high of 5,945.65.
ICICI Bank and HDFC Bank were among top losers in30-share Sensex. Axis Bank ended nearly 1 per cent lower.
In New Delhi, Financial Services Secretary Rajiv Takrusaid both RBI and the Ministry are collecting information. Ifthe allegations are established, then whoever is guilty willpay the price, he added.
"Banking stocks pared their recent gains after news ofRBI probing the money-laundering practices in the said banksweakened investor sentiment," said Rakesh Goyal, Senior VicePresident, Bonanza Portfolio Ltd.
While Asian stocks were mixed, a lower opening in Europeas eurozone leaders eased constraints on national budgets amida deepening recession, further influenced the Indian markets.
ICICI Bank ended 3.93 per cent lower, HDFC Bank by 1.67per cent. The negative sentiment hit others including Yes Bankand Indusind Bank.
Overall, 18 Sensex like Reliance Industries, BhartiAirtel, GAIL India, L&T, BHEL, Tata Motors, Maruti Suzuki andNTPC, declined.